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The  Oregon 
Pacific  Railroad 


Its  Present  Condition 
and  Needs 


With  Some  Suggestions  as  to  its  Future 

Development 


BY 


E.  W.  Hadley, 

Receiver, 


Return  this  book  on  or  before  the 
Latest  Date  stamped  below. 

Theft,  mutilation,  and  underlining  of  books 
are  reasons  for  disciplinary  action  and  may 
result  in  dismissal  from  the  University. 

University  of  Illinois  Library 

JUH  3U 

1367 

L161— 0-1096 

\ 


UH*‘ 


RSITY  OF 
-  URBANA 
'TACKS 


A 

WEBFOOT  VOLUNTEER 


The  Diary  of 
William  M.  Hilleary 
1864-1866 


Edited  by 

Herbert  B.  Nelson  and  Preston  E.  Onstad 


In  cooperation  with  the 
OREGON  HISTORICAL  SOCIETY 


Corvallis: 

OREGON  STATE  UNIVERSITY  PRESS 


For  nineteen  months  at  the  close  of  the  Civil 
War,  William  M.  Hilleary  of  Linn  County,  Oregon, 
served  as  a  corporal  in  the  First  Oregon  Volunteer 
Infantry.  At  Camp  Russell  ( on  the  new  state  fair¬ 
grounds  near  Salem);  at  Fort  Hoskins  in  Kings 
Valley;  at  Fort  Vancouver,  Fort  Walla  Walla,  and 
Fort  Boise;  at  camps  in  eastern  Oregon  and  Idaho 
he  took  part  in  a  little-known  but  significant  cam¬ 
paign  in  the  War  Between  the  States. 

Transfer  of  regular  Army  troops  from  posts  in 
the  Oregon  Country  to  the  battlefields  of  the  South 
and  East  had  left  the  settlers  and  travelers  in  the 
Northwest  unprotected  from  Indians  and  lawless 
marauders,  and  susceptible  to  revolution.  Volun¬ 
teers  stepped  in  to  fill  the  gap. 

Three  days  after  volunteering,  Iowa-born  Wm. 
Hilleary  became  engaged  to  Irene  Cornelius, 
whom  he  affectionately  called  “Liebe.”  Partly  to 
acquaint  his  sweetheart  with  her  future  husband 
and  partly  to  dispell  the  monotony  of  garrison 
duty,  he  began  keeping  a  diary  for  her.  He  pref¬ 
aced  it  with  an  account  of  his  ancestry  and  early 
life  and  then  began  a  day-to-day  record  of  his 
thoughts  and  actions. 

The  three  little  pocket  volumes  that  resulted 
provide  one  of  the  best  glimpses  into  life  in  the 
Pacific  Northwest  in  the  1860’s  that  has  yet  been 
uncovered.  A  young  man  of  native  intelligence, 
natural  curiosity,  and  sound  education,  Hilleary 
wrote  with  keen  observation,  righteous  indigna¬ 
tion,  and  sprightly  humor. 

Because  he  felt  his  state  and  country  needed 
him,  Hilleary  left  his  life  as  school  teacher,  student, 
and  farmer  to  join  a  company  of  soldiers  who  saw 
much  of  the  Oregon  Country.  Poorly  equipped, 
sparsely  clothed,  and  at  times  inadequately  fed, 
these  citizen-soldiers  performed  their  patriotic 
duty  in  rugged  terrain  under  adverse  conditions  of 
weather,  training,  and  leadership.  A  few  times 
they  traveled  by  river  steamer  on  the  Willamette 
and  Columbia,  but  more  typically,  they  trudged 
through  mountain  gorges  and  over  trackless  wastes, 
sometimes  through  knee-deep  snow,  and  rode 
balky  mules  carrying  “express”  between  isolated 
posts.  Bread  riots  at  Fort  Hoskins,  mutiny  at  Camp 
Colfax,  grim  vigilante  action,  and  roisterous  enter¬ 
tainment  in  Boise  added  spice  to  army  life. 


Order  blank 


OREGON  STATE  UNIVERSITY  PRESS 
101  Waldo  Hall,  Oregon  State  University 
Corvallis,  Oregon  97331 


Please  send  .  copies  of  A  WEBFOOT  VOLUNTEER: 

The  Diary  of  William  M.  Hilleary  1864-1866,  edited  by  Herbert 
B.  Nelson  and  Preston  E.  Onstad,  at  $6.00  a  copy. 

Send  also  other  Studies  in  History  in  the  Oregon  State  Mono¬ 
graph  series  as  indicated  below: 


DEBATERS  AND  DYNAMITERS:  The  Story  of 
the  Hay  wood  Trial,  by  David  H.  Grover  $6.00 


JOHN  LEDYARDS  JOURNAL  OF  CAPTAIN 
COOK  S  LAST  VOYAGE,  edited  by  James  Ken¬ 
neth  Munford  $6.00 


THE  COEUR  d’ALENE  MINING  WAR  OF  1892, 

by  Robert  Wayne  Smith  $4.00 


THE  OPENING  AND  PENETRATION  OF 
SAMOA  TO  1880,  by  Joseph  W.  Ellison 
(paperback)  $.50 


Total  amount  enclosed  $ 


Ordered  by: 


Date 


Dalles 


Vancouver 


Portland 


Salem 
^Turner 
■  Aumsville 


Lebanon 


HILLEARY’S 

MILITARY 

TRAVELS 

1864-1866 


Scale 


Acting  as  clerk  of  Company  F,  Hilleary  la¬ 
boriously  copied  documents  and  kept  the  records 
that  make  a  military  organization  run.  Sand  some¬ 
times  whistled  over  the  rock  he  used  as  a  desk.  Ink 
sometimes  froze  in  his  pen  as  he  wrote,  but  he 
carried  on  an  extensive  correspondence  and  kept 
detailed  personal  records.  And  he  faithfully  kept 
this  diary,  which  his  sweetheart  preserved  and 
which  eventually  fell  into  the  hands  of  the  Oregon 
Historical  Society. 

In  later  years,  as  he  returned  to  teaching  school 
and  as  he  became  a  successful  farmer  and  rose  to 
prominence  as  a  leader  of  the  Patrons  of  Hus¬ 
bandry  (the  Grange),  Hilleary  never  forgot  his 
wartime  experiences.  He  wrote  newspaper  articles 
and  made  many  speeches  based  on  his  diary.  He 
was  a  member  of  several  G.A.R.  posts  and  became 
head  of  the  Indian  War  Veterans  of  Oregon. 


,  /  <  ’ 

Fort  Hoskins*  I*  Albany 

Corvallis 


Brownsville 


progressive  member  of  the  Board  of  Regents  of 
Oregon  Agricultural  College.  He  and  Liebe 
traveled  extensively,  attended  four  sessions  of  the 
National  Grange,  and  on  one  occasion  were  intro¬ 
duced  to  President  Grover  Cleveland. 

Editors  Nelson  and  Onstad— faculty  members 
at  Oregon  State  University— have  added  an  intro¬ 
duction  which  helps  illuminate  the  man  and  place 
the  manuscript  in  the  perspective  of  the  period 
in  which  it  was  written.  Their  comments  through¬ 
out  the  text  help  identify  the  settings  and  the 
actors  in  this  adventure-filled  drama.  In  this  first 
complete  reprinting  of  the  diary,  they  present  an 
annotated,  illustrated,  indexed  volume  of  lasting 
value  in  the  always-fascinating  story  of  the  de¬ 
velopment  of  the  American  West. 

OREGON  STATE  MONOGRAPHS  1  STUDIES  IN  HISTORY  NUMBER  FIVE 


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************* 


Oregon  Pacific  Railroad 


Its  Inception,  Present  Condition, 
and  Needs 


With  some  Suggestions  as  to  its  Future  Development 


E.  W.  HADLEY,  Receiver 


“  The  location  of  a  railroad  is  giving  it  its  constitution.  It 
may  be  sick  almost  unto  death,  with  accidents  of  construction 
and  management,  but  with  a  good  constitution  it  will  ultimately 
recover.” — D .  //.  Ainsworth. 


CHICAGO  : 

Rand,  McNally  &  Company 


*^*0 


The  Oregon  Pacific  Railroad. 


ITS  INCEPTION. 


For  the  purpose  of  the  present  narrative  a  detailed  history  of 
the  inception  of  the  enterprise  under  consideration  is  deemed  to 
be  uncalled  for,  yet  in  order  to  clearly  understand  many  of  the 
present  conditions  connected  with  it,  it  is  necessary  to  biiefly 
sketch  the  conditions  under  which  the  road  was  organized. 

Throughout  this  statement  references  will  be  found  to  vari¬ 
ous  sources  of  information,  consisting  of  maps,  documents,  and 
photographs,  which  the  writer  has  been  unable,  by  reason  of 
lack  of  time,  to  have  copied  so  that  they  might  form  an  appen¬ 
dix  to  each  copy  of  this  report.  1  he  originals  of  these  maps, 
documents,  and  photographs  form  separate  volumes,  which  aie 
submitted  herewith. 


4 


u 


<0 


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As  walking  goes  before  riding,  so  wagon  roads  precede  rail¬ 
roads,  and  as  in  the  present  instance  two  wagon  roads  have  an 
important  bearing  upon  the  organization  of  the  Oregon  Pacific 
Railroad,  it  is  necessary  to  make  some  reference  thereto,  to  aid 
in  a  clear  understanding  of  the  original  inception  of  the  railroad. 

“  The  Corvallis  &  Yaquina  Bay  Military  Wagon  Road  Com¬ 
pany  ”  was  organized  in  1864,  for  the  purpose  of  building  a 
wagon  road  from  Corvallis,  in  Benton  County,  Ore.,  to  tide  water 
on  Yaquina  Bay.  To  aid  in  the  construction  of  this  road  the 

State  granted  alternate  sections  of  land  lying  on  both  sides  of 

(8) 


5  !  I 


4 


the  road  to  the  amount  of  about  57,000  acres.  The  wagon  road 
was  duly  constructed  and  the  lands  earned.  In  1871  and  1872, 
the  owners  of  the  wagon  road  land  grant  being  desirous,  as  pub¬ 
lic-spirited  citizens,  of  obtaining  for  the  country  a  railroad  from 
the  Willamette  Valley  to  tide  water,  and  upon  representations 
of  Col.  T.  Egenton  Hogg  that  if  they  would  transfer  to  him 
their  land  grant  he  would  build  such  a  railroad,  sold  to  him  for 
a  consideration  of  $6,000  fifty-seven  thousand  (57,000)  acres  of 
land,  being  the  whole  of  their  land  grant. 

These  lands  extend,  in  general  terms,  from  Elk  City,  in 
Range  10  west,  to  Wren’s  Station,  in  Range  6  west.  The  Oregon 
Pacific  Railroad  follows  the  military  wagon  road  very  closely, 
and  winds  through  these  lands  from  east  to  west.  The  country 
in  which  the  lands  are  located  is  very  broken  and  mountainous. 
The  major  portion  of  the  marketable  timber  upon  these  lands 
was  burnt  off  by  an  immense  fire  which  swept  over  the  whole 
western  slope  of  the  Coast  Range  prior  to  the  first  white  settlement. 
A  large  portion  of  these  lands  being  on  edge,  so  to  speak,  are 
practically  valueless  for  agricultural  purposes.  The  soil,  how¬ 
ever,  is  fertile,  and  where  the  inclination  is  not  too  steep  they 
are  well  suited  to  fruit.  There  are  a  number  of  narrow  fertile 
valleys,  and  some  isolated  patches  of  timber  which  escaped  the 
great  fire. 

In  1877  Colonel  Hogg  sold  to  the  Oregon  Agricultural  Com¬ 
pany,  Limited,  of  London,  England,  for  twelve  thousand  pounds, 
an  undivided  one-half  interest  in  these  lands.  The  balance  of 
his  interest  in  these  lands  is  now  covered  by  a  trust  deed  to 
George  S.  Coe  of  New  York  City. 

On  March  10,  1864,  the  Willamette  Valley  &  Cascade  Mount¬ 
ains  Military  Wagon  Road  Company  was  incorporated  under 
the  general  laws  of  the  State  of  Oregon,  with  the  object  of 
building  a  road  from  the  Willamette  River  across  the  Cascade 
Mountains  to  the  eastern  banks  of  the  Deschutes  Rjver.  To  aid 


in  the  construction  of  this  wagon  road,  the  alternate  odd 
sections  of  public  lands,  to  the  extent  of  three  sections  per 
mile  of  road,  were  granted  to  the  Wagon  Road  Company. 
These  lands  were  to  be  selected  within  six  miles  of  the  wagon 
road.  This  grant  amounted  in  total  to  about  850,000  acres. 
Although  bitterly  opposed,  on  the  ground  that  the  lands  had  not 
been  earned,  the  title  was  finally  determined  by  a  court  of  last 
resort  to  be  in  the  Wagon  Road  Company. 

In  1871,  having  in  view  the  construction  of  a  railroad  from 
the  Willamette  Valley  into  Eastern  Oregon,  the  Wagon  Road 
Company  sold  this  land  grant  to  Col.  T.  Egenton  Hogg, 
Henry  Weil,  and  associates.  In  1879  the  land  was  transferred 
to  David  Cahn,  as  trustee;  the  deed  of  trust  showed  the 
relative  interest  of  the  parties  concerned,  and  set  forth  Colonel 
Hogg’s  interest  as  Shortly  thereafter  the  other  owners  of  the 
land  entered  into  a  contract  with  Colonel  Hogg  by  which  he  was 
given  a  two-year  option  in  which  to  sell  the  lands  at  a  specified 
price  of  $445,000,  it  being  stipulated  that  in  case  Colonel  Hogg 
made  sale  of  the  lands  at  the  price  agreed  upon,  Weil  was  to 
make  a  deed  to  the  purchaser,  and  Colonel  Hogg  was  to  be 
allowed  $25,000  for  his  expenses  in  carrying  through  the  deal. 
A  few  days  prior  to  the  expiration  of  the  two  years,  Colonel 
Hogg  tendered  to  Weil  a  certified  check  for  $600,000  and 
demanded  a  deed  for  the  property,  which  Weil  refused  to  give. 
In  1880,  on  the  ground  that  he  had  completed  the  purchase  of 
the  lands  from  Weil,  Colonel  Hogg  made  and  filed  a  deed  of  the 
lands  to  the  Willamette  Valley  &  Coast  Railroad  Company,  and 
in  the  same  year  a  mortgage  was  made  by  the  Company  to  the 
Farmers’  Loan  &  Trust  Company,  pledging  these  lands  in 
order  to  secure  the  issuance  of  the  first  mortgage  bonds  of  the 
Railroad  Company.  So  much  for  the  wagon  roads. 

The  Willamette  Valley  &  Coast  Railroad  Company  had 
been  organized  in  1874.  Work  was  commenced  at  Yaquina 


6 


Bay  and  at  Corvallis  in  July,  1881,  and  the  track  was  connected 
near  Harris  Station  in  1884. 

In  1886  the  track  was  pushed  eastward  to  Albany,  a  station 
on  the  Oregon  &  California  Railroad  on  the  east  side  of  the  Will¬ 
amette  River,  and  in  the  spring  was  carried  to  the  Santiam  River, 
and  in  the  fall  of  1889  the  track  was  completed  to  its  present 
terminus,  near  Detroit  Station,  in  the  Cascade  Mountains. 

The  Oregon  Pacific  Railroad  was  organized  on  the  25th  day 
of  September,  1880,  and  on  the  same  day  its  Board  of  Directors 
resolved  to  enter  into  a  contract  with  the  Willamette  Valley  & 
Coast  Railroad  Company  for  the  construction  and  equipment  of 
its  railroad  from  Yaquina  to  Corvallis,  and  thence  to  the  eastern 
boundary  of  the  State  of  Oregon,  in  consideration  of  the  concur¬ 
rence  of  that  Company  in  the  execution  of  joint  mortgage  bonds 
to  the  total  amount  of  fifteen  millions  of  dollars,  over  the  prop¬ 
erty  and  franchises  of  both  companies.  The  draft  of  the  pro¬ 
posed  mortgage,  or  deed  of  trust,  in  favor  of  the  Farmers’  Loan 
&  Trust  Company  was  duly  approved  at  this  same  meeting. 

The  Pacific  Construction  Company  was  organized  March  31, 
1884.  An  agreement  was  made  by  the  Oregon  Pacific  Railroad 
Company  with  the  Pacific  Construction  Company  to  construct  a 
certain  portion  of  its  line  in  consideration  of  the  transfer  to  the 
Pacific  Construction  Company  of  first  mortgage  bonds  of  the 
Railroad  Company. 

I  can  find  no  trace  in  the  minute  books  of  the  Railroad  Com¬ 
pany  of  this  agreement  with  the  Construction  Company,  nor 
have  I  been  able  to  find  a  copy  of  the  agreement  itself. 

The  Construction  Company  undertook  the  work  from  mile¬ 
post  136  eastward,  and  appears  to  have  built  fourteen  miles  of 
grade.  The  expense  of  this  construction,  however,  was  paid  by 
the  Oregon  Pacific  Railroad  Company,  and  charged  in  account 
in  their  books  to  the  Pacific  Construction  Company.  The 


7 


amount  thus  expended  by  the  Railroad  Company  and  charged 
to  the  Construction  Company  is  $173,454.66. 

The  present  receiver  of  the  Oregon  Pacific  Railroad  Com¬ 
pany  has  intervened  as  a  creditor  to  this  amount  in  a  suit  for 
the  appointment  of  a  receiver  for  the  Pacific  Construction 
Company. 

The  books  of  the  Oregon  Pacific  Railroad  Company  in 
Oregon  show  no  credits  to  the  Pacific  Construction  Company. 

An  ocean  terminus  implies  steamships  arriving  and  departing 
therefrom,  and  in  order  to  connect  Yaquina  Bay  and  the  rail¬ 
road  with  the  markets  of  the  world  the  Oregon  Development 
Company  was  organized  in  1884.  It  entered  into  two  agree¬ 
ments  with  the  Railroad  Company,  which  will  be  explained  in 
detail  further  on.  Suffice  it  to  say,  that  the  Development  Com¬ 
pany  became  the  owner  “in  account  ”  of  the  Railroad  Company  s 
ocean  terminal  facilities  at  Yaquina  City,  and  by  the  first  of  these 
contracts  leased  these  terminal  facilities  back  to  the  Railroad 
Company  for  a  stipulated  rental.  By  the  second  of  these  agree¬ 
ments _ which  appears  to  have  been  verbal,  and  of  which  no  trace 

can  be  found  in  the  minute  books  of  the  Company,  but  which 
appears  to  have  been  authorized  by  resolution  of  the  Executive 
Committee  —  the  Development  Company  undertook  to  provide 
and  operate,  at  the  expense  of  the  Railroad  Company,  the  neces¬ 
sary  steamboats  to  carry  on  the  business  between  Yaquina  Bay 
and  San  Francisco. 

The  Development  Company  also  purchased  three  stern-wheel 
river  steamboats,  for  use  on  the  Willamette  River  between  Port¬ 
land  and  the  head  of  navigation,  which  it  afterward  transferred 
to  the  Railroad  Company. 

The  projectors  of  the  Oregon  Pacific  contemplated  a  railroad 
line,  commencing  at  tide  water  on  Yaquina  Bay  and  crossing  the 
State  from  east  to  west,  and  in  pursuance  of  this  a  survey  was 
pushed  across  Eastern  Oregon  to  the  Snake  River,  and  to  Boise 


8 


City  in  Idaho,  about  thirty  miles  east  of  the  eastern  boundary  of 
Oregon. 

The  idea  seems  to  have  been,  and  was  so  publicly  repre¬ 
sented,  to  connect  the  railroad  of  the  Oregon  Pacific  Company 
at  Boise  City  with  some  through  line  from  Chicago,  preferably 
the  Chicago  &  North-Western  Railway.  A  survey  was  also 
made  from  a  point  near  Munker’s  Station,  east  of  Albany,  in  a 
northerly  direction  to  Salem,  the  capital  of  the  State,  distant 
about  thirty-five  miles  from  Munker’s,  and  property  was  pur¬ 
chased  on  the  water-front  at  Salem. 

Construction  ceased  in  the  fall  of  1889,  and  the  Company, 
getting  deeper  and  deeper  into  debt,  finally  defaulting  its 
October  interest  coupons,  was  on  the  28th  of  October,  1890, 
placed  in  the  hands  of  a  receiver  —  Col.  T.  Egenton  Hogg 
being  appointed  receiver  by  the  Circuit  Court  of  the  State  of 
Oregon. 

Bankrupt  on  the  28th  day  of  October,  1890  —  a  further  debt 
of  $800,000,  in  the  shape  of  various  issues  of  receiver’s  certifi¬ 
cates,  was  piled  upon  the  property  within  the  twenty-six  months 
constituting  the  first  receivership — and  yet  at  the  end  of  that 
receivership  the  Company  was  nine  months  in  arrears  with  its 
pay-rolls. 

On  the  6th  of  March,  1893,  on  the  ground  of  non-residence 
within  the  jurisdiction  of  the  Court,  Colonel  Hogg  was  removed, 
and  E.  W.  Hadley  of  Corvallis,  Ore.,  was  appointed  receiver. 

This  brief  sketch  of  the  Company’s  history  is  sufficient  for 
the  purpose  now  in  view. 

The  scheme  under  which  the  Oregon  Pacific  enterprise  was 
set  on  foot  contemplated  a  railroad  600  miles  long,  from  a  fine 
natural  harbor  on  the  Pacific  Ocean,  across  an  immense  State,  to 
a  hoped-for  eastern  outlet  on  the  eastern  boundary  of  that  State- 
This  line  would  cross  the  State  in  an  east  and  west  direction 
almost  midway  between  north  and  south  boundaries  of  the  State. 


9 


As  a  through  line,  its  nearest  competitor  on  the  north  would  be 
the  Union  Pacific,  distant  at  all  points  on  an  average  of  over  one 
hundred  miles  ;  in  the  other  direction,  its  only  competitor  would 
be  the  Central  Pacific,  about  four  hundred  miles  to  the  south. 

Taking  Chicago  as  a  basing  point,  and  the  Chicago  &: 
North-Western  line  as  the  most  favorable  one  for  the  Oregon 
Pacific  to  connect  with  at  Boise  City,  such  a  new  through  line 
would  be  250  miles  the  shortest  line  to  the  Pacific  Coast  —  an 
immense  advantage  of  itself.  The  enterprise  aimed  to  make  use 
of  most  felicitous  natural  advantages  for  the  construction  of  a 
railroad.  Good  harbors  on  the  Pacific  Coast  are  few  and  far 
between.  I  make  the  statement,  without  fear  of  contradiction, 
that  Yaquina  Bay  is  the  safest,  and,  all  things  considered,  the 
best  harbor  between  the  mouth  of  the  Columbia  and  the  Golden 
Gate.  Starting  from  this  harbor  a  line  was  carried  over  the 
Coast  Range  at  the  low  elevation  of  760  feet.  The  next  fifty 
miles  lies  across  the  heart  of  the  magnificent  Willamette  Valley. 
With  grades  no  heavier  than  2  per  cent,  the  formidable  barrier 
of  the  Cascade  Mountains  was  to  be  crossed  at  the  very  low 
elevation  of  4,600  feet.  Eighty  miles  of  this  mountain  section 
lies  through  one  of  the  finest  bodies  of  timber  now  standing  upon 
the  continent  to-day. 

The  pass  through  which  the  line  was  to  be  carried  over  the 
mountains,  in  the  opinion  of  all  competent  engineers  who  are 
conversant  with  the  entire  Cascade  Range,  is  unique.  Short  and 
easy  grades  carry  the  line  to  the  high  and  level  plateau  of  East¬ 
ern  Oregon,  an  immense  expanse  of  almost  level  country,  equal 
in  extent  to  the  State  of  New  York,  almost  every  foot  of  which 
is  wonderfully  fertile  when  brought  under  cultivation.  The  sur¬ 
veyed  line  leaves  this  wonderful  country  of  Eastern  Oregon, 
through  what  has  been  well  termed  its  “key”  —  the  Malheur 
Canon. 

While  the  projectors  of  this  enterprise  did  not  appear  to 


10 


realize  all  of  the  possibilities  of  the  scheme,  yet,  viewed  simply 
in  the  light  in  which  they  set  it  forth,  that  of  the  western  end 
of  the  trans-continental  line,  I  can  not  agree,  as  some  have  stated, 
that  “  its  construction  as  contemplated  was  premature  and 
unnecessary.”  Railroads,  unlike  newspapers,  are  rarely  launched 
to  “  meet  a  long-felt  want.”  The  shrewdest  builders  of  railroads 
are  keen  to  reach  out  ahead  of  the  actual  demand  and  seize  for 
their  future  benefit  great  natural  advantages  and  an  unoccupied 
country.  Commenting  upon  the  “  probable  volume  of  traffic  ”  of 
projected  roads,  Mr.  Arthur  Wellington,  C.  E.,  says:  “  The 
greatest  difficulty  in  making  such  estimates  is  ordinarily  the  fact 
that  to  make  them  it  is  essential  to  estimate  and  allow  for  the 
probable  future  growth  of  traffic,  since  it  is  rarely  the  case  that 
a  railway  is  built  simply  and  only  to  accommodate  the  traffic 
“  in  sight,”  as  miners  say.  On  the  contrary,  it  has  been  and  will 
continue  to  be  frequently  the  case  that  the  railway  is  relied  upon 
not  only  to  accommodate,  but  to  create  a  greater  part  of  the 
whole  of  the  traffic  for  which  it  was  built.”  And  if  ever  nature 
made  plain  the  way  for  the  building  of  a  great  railroad,  she  has 
done  so  in  the  case  of  the  Oregon  Pacific,  in  letters  so  large  that 
he  who  runs  may  read. 

'l'he  failure  to  realize  the  great  advantages  which  should 
have  accrued  to  the  owners  of  this  property  is,  in  my  opinion, 
due  to  the  failure  on  the  part  of  the  original  projectors  to  realize 
three  economic  conditions: 

First,  that  you  must  learn  to  walk  before  you  run;  second, 
that  it  is  local  traffic  which  pays  dividends;  and  third,  that 
practical  railroad  managers  are  made,  not  born.  As  to  the  first 
of  these  conditions,  when  construction  ceased  in  1889  it  was 
the  publicly  expressed  intention  of  the  management  to  push  the 
line  as  rapidly  as  possible  across  the  State.  Had  this  intention 
been  carried  out,  about  four  hundred  miles  would  have  been 
added  to  the  mileage  of  the  system,  upon  which  it  is  extremely 


11 


doubtful  whether  the  share  of  trans-continental  business  that 
might  have  been  obtained  would  have  paid  operating  expenses, 
had  the  desired  eastern  connection  at  Boise  City  been  realized; 
nor  would  the  local  business  which  would  have  come  to  this  line 
across  Eastern  Oregon  been  sufficient  to  pay  dividends  on  so 
much  mileage  for  several  years  yet  to  come. 

It  would  have  been  the  part  of  wise  judgment  to  have  carried 
the  line  only  within  the  boundaries  of  Eastern  Oregon,  and  there 
waited  for  two  or  three  years  until  the  country,  stimulated  by  the 
entrance  of  the  railroad,  should  have  developed  business  suffi¬ 
cient  to  have  justified  them  in  building  another  ioo  miles,  say, 
and  thus  by  degrees  have  crossed  the  State,  keeping  pace  with 
the  development  of  the  local  business. 

In  the  second  place,  the  money  which  thus  would  have  been 
saved  could  have  been  most  profitably  spent  in  pushing  out 
feeder  lines  into  the  rich  territory  of  the  Willamette  Valley. 

There  is  no  personal  desire  whatever  to  criticise  the  past 
management,  but  yet,  to  make  clear  one  of  the  reasons  for  the 
failure  of  this  great  enterprise,  it  is  necessary  to  emphasize  the 
fact  that  railroading  to-day  is  a  practical  science .  The  physical 
construction  and  management  of  that  intricate  modern  machine, 
the  railroad,  can  not  successfully  be  left  in  the  hands  of  those 
who  have  not  served  a  long  apprenticeship  to  the  trade. 


1  9 

1  Aj 


CRITICAL  INSPECTION  OF  THE  PRESENT  PHYSICAL 
CONDITION  OF  THE  PROPERTY. 


OCEAN  DIVISION. 

Prior  to  March  6,  1893,  the  Ocean  Division  was  operated  by 
the  Oregon  Development  Company  under  an  alleged  contract 
with  the  Oregon  Pacific  Railroad  Company.  At  various  times 
the  Development  Company  had  from  one  to  three  steamers  on  the 
route.  Two  of  these,  the  Yaquina  Bay  and  the  Yaquina  City, 
were  wrecked  at  the  entrance  to  the  bay;  the  Yaquina  City  by 
the  breaking  of  her  tiller  chains  in  1887;  the  Yaquina  Bay  was 
lost  by  bad  seamanship  December  9,  1888. 

The  Eastern  Oregon  and  the  Farralone  were  chartered  at 
different  times  by  the  Development  Company.  The  present  ship, 
the  Willamette  Valley,  formerly  the  Annie  Carroll,  was  built  in 
1883  on  the  Delaware,  was  purchased  by  the  Development  Com¬ 
pany,  and  it  is  reported  that  there  was  about  $30,000  expended 
upon  her  in  refitting  and  adding  to  her  cabin  accommodations. 
She  is  an  iron  ship,  rated  A  1,  and  will  carry  1,000  tons  of  cargo 
on  a  mean  draught  of  13  feet  6  inches.  On  her  first  trip  from 
Baltimore  to  San  Francisco  she  brought  1,100  tons  of  coal.  She 
has  accommodations  for  sixty  first-class  passengers  and  fifty 
steerage.  The  dining  saloon  is  finished  in  mahogany,  balance  of 
her  cabin  fittings  in  soft  woods,  molded  and  painted.  The  ship 
is  sound  and  seaworthy,  and  economical  of  fuel,  but  unfitted  for 
the  service. 

Up  to  March  6th  the  ship  had  always  been  operated  with  coal, 
at  a  varying  cost  in  San  Franciscoof  from  $7.50  to  $9  per  ton.  With 
coal  the  average  consumption  per  mile  run  is  about  144  pounds. 
With  coal  at  $8  this  gives  an  average  cost  per  mile  run  of  57TV 
cents.  In  view  of  the  fact  that  fir-wood  was  abundant  and  cheap 


13 


in  Oregon,  it  was  believed  that  the  ship  could  be  much  more  eco¬ 
nomically  fired  with  this  fuel,  and  that  if  the  experiment  should 
prove  successful,  the  considerable  amounts  heretofore  spent  in 
San  Francisco  for  coal  would  be  dispersed  along  the  line  of  the 
road,  with  a  resulting  benefit  to  the  Company’s  rail  earnings. 
Contracts  were  accordingly  made  for  two-foot  fir-wood  at  $2.25 
per  cord  loaded  on  cars.  In  these  figures  no  allowance  has  been 
made  for  the  cost  of  transporting  this  wood  to  the  ship’s  side,  for 
the  reason  that  as  our  trains  were  almost  invariably  running  light, 
the  expense  of  adding  a  few  more  cars  to  each  train  was  merely 
nominal.  The  experiment  proved  a  complete  success,  and  the 

/  1 

ship  has  been  continuously  fired  with  wood,  with  a  consumption 
of  about  one-ninth  of  a  cord  per  mile  run.  With  wood  at  $2.25, 
this  is  an  average  of  25  cents  per  mile  run,  and  a  direct  saving 
over  coal  of  32^  cents  per  mile  run.  This  amounts  in  the  single 
trip  from  Yaquina  to  San  Francisco  of  460  miles  to  a  saving  of 
$150,  with  the  added  advantage  above  referred  to  of  keeping 
the  amount  expended  for  fuel  in  circulation  along  our  own  line. 
The  cost  per  mile  run  for  fuel  varies  somewhat  with  the  draught, 
speed,  and  weather.  Following  is  a  detailed  statement  of  voy¬ 
ages  Nos.  2,  3,  and  4: 

Voyage  No.  2  —  Average  speed  of  ship  down,  8T*7  knots;  wood 
used  per  mile  run,  one-eighth  of  a  cord;  average  of  ship’s  speed 
up,  10^  knots;  coal  used  per  mile  run,  131  pounds. 

Voyage  No.  3  —  Average  speed  of  ship  down,  9^  knots;  wood 
used  per  mile  run,  one-ninth  of  a  cord;  average  speed  of  ship 
up,  9t6¥  knots;  coal  used  per  mile  run,  141  pounds. 

Voyage  No.  4  —  Average  speed  of  ship  down,  knots;  wood 
used  per  mile  run,  one-ninth  of  a  cord;  average  speed  of  ship 
up,  8-j^f  knots;  coal  used  per  mile  run,  160  pounds. 

Below  will  be  found  details  of  the  ship’s  construction,  engines, 
etc.: 

Length  over  all,  210  feet  6  inches;  between  perpendiculars, 


14 


205  greatest  molded  beam,  34  feet;  depth  of  forward  hold, 

18  feet  6  inches;  depth  of  after  hold,  12  feet;  size  of  forward 
ports,  3  feet  by  3  feet  6  inches;  size  of  middle  ports,  3  feet  by  4 
feet;  size  of  after  ports,  4  feet  3  inches  by  4  feet  10  inches; 
distance  between  forward  and  middle  ports,  59  feet  6  inches. 

Engines  built  by  Harlan  &  Hollinsworth  in  1883.  Direct- 
acting  compound  cylinders,  26  and  44  inches  in  diameter,  36- 
inch  stroke;  two  Scotch  boilers,  11  and  10  feet  long,  each  with 
164  3-inch  tubes.  Boilers  built  by  Harlan  &  Hollinsworth 
Company. 

There  are  40  square  feet  of  grate  surface  to  each  boiler; 
working  pressure,  90  pounds.  Boilers  were  repaired  in  1891,  and 
are  now  in  good  condition. 

Coal  bunkers  contain  5,800  cubic  feet,  and  will  hold  135  tons 
of  coal.  The  screw  is  n  feet  in  diameter;  pitch,  17  feet  3  inches. 
The  ship  has  four  water-tight  bulkheads;  hull  plates  are  4,  and 
t9t  inches  thick. 

The  ship  has  handled  on  her  south-bound  trips,  March  6th  to 
October  23d:  Grain,  7,795  tons;  miscellaneous,  3,154  tons; 
passengers,  530. 

On  north-bound  trips:  Merchandise,  4,150  tons;  passen¬ 
gers,  559. 

The  ship  came  off  the  dry-dock  in  December,  1892,  having 
had  her  bottom  cleaned  and  two  coats  of  anti-fouling  paint. 

Repairs  Needed. — The  general  condition  of  the  ship  is  good. 
Along  the  water-line  on  each  side  plates  are  considerably  pitted, 
and  several  butts  in  the  bottom  are  bad;  bunker  sides  are  bad  at 
the  bunker  floors;  engines  are  in  fair  condition.  The  high- 
pressure  cylinders  should  be  rebored  and  have  new  packing. 
Shafts  should  be  lined  up;  outboard  bearings  refitted  and  some 
new  steam-pipe  put  in.  One  of  the  furnaces  is  a  little  out  of 
line,  and  boilers  need  new  steam  covering. 

Cost  of  the  repairs  needed  for  coming  twelve  months  would 


15 


be  about  $1,200.  This  does  not  include  docking  and  cleaning, 
which  would  cost  $1,000. 

While  a  good  vessel  of  her  class,  the  Willamette  Valley  is 
unfitted  for  the  business.  At  present  the  situation  does  not 
warrant  the  Company  in  competing  for  passenger  business 
between  Yaquina  and  San  Francisco.  A  purely  freight  boat  is 
what  the  present  trade  demands.  The  Willamette  Valley  carries 
but  1,000  tons  on  a  draught  of  thirteen  feet  and  six  inches,  and 
moves  this  tonnage  with  the  expenses  incident  to  a  passenger 
vessel.  A  modern  steam  freight  carrier,  such  as  the  Whaleback, 
or  better  still,  the  latest  development  of  the  idea,  the  turret 
ship,  would  move  three  times  this  tonnage  on  the  same  draught, 
and  with  no  greater  expense  for  wages  or  fuel.  The  remarka. 
ble  earning  capacity  of  the  turret  ship  can  not  be  overlooked. 
As  a  result  of  five  months’  operation,  it  is  reported  that  she 
has  paid  her  owners  a  dividend  of  23  per  cent. 

Should  the  Oregon  Pacific  scheme  be  developed  upon  the  lines 
which  nature  has  evidently  laid  out,  the  time  will  shortly  come 
when  there  will  be  an  opportunity  for  the  Company  to  compete 
for  a  large  passenger  traffic  between  Portland  and  San  Francisco. 
When  this  time  comes,  however,  the  business  will  be  of  such 
proportions  that  it  will  be  the  part  of  economy  to  entirely  segre¬ 
gate  its  ocean  passenger  and  freight  business,  and  provide  for 
the  former  a  vessel  specially  designed  for  the  business.  Fur¬ 
ther  reference  will  be  made  to  this  later  on. 

There  is  an  old  unsettled  lien  for  labor  on  the  Willamette 
Valley  to  the  amount  of  $500,  held  bv  John  Monk  of  Portland. 

The  Tug  Resolute.  —  The  tug  Resolute,  prior  to  March 
6th,  although  the  property  of  the  Railroad  Company,  was  treated 
merely  as  an  adjunct  of  the  Oregon  Development  Company.  It 
performed  no  service  whatever  other  than  making  daily  sound¬ 
ings  over  the  bar,  and  in  piloting  the  ship  in  and  out  of  the  har¬ 
bor.  The  cost  of  operating  her,  amounting  to  about  $580  per 


16 


month  for  wages  and  $65  for  fuel,  a  total  of  $645,  was  practically 
a  dead  loss  per  month,  no  attempt  having  been  made  to  utilize 
the  tug  for  any  other  purpose.  Since  March  6th  the  tug  has 
been  operated  as  part  of  the  rail  line. 

Between  Yaquina  City,  the  terminus  of  the  railroad,  and  New¬ 
port,  a  small  town  at  the  entrance  to  the  bay,  a  distance  of  three 
miles,  there  is  a  considerable  amount  of  passenger  and  freight 
business.  Heretofore  this  has  always  been  done  by  a  small 
steamer  owned  by  outside  parties.  At  the  date  of  the  com¬ 
mencement  of  this  receivership  the  steamer  Volanta,  owned 
principally  by  one  of  the  conductors  and  other  employes  of  the 
Company,  was  taking  this  business.  I  could  see  no  reason 
why  this  Company  should  not  benefit  by  this  business,  and, 
accordingly,  I  at  once  placed  the  Resolute  in  service  between 
Yaquina  and  Newport,  making  two  round  trips  per  day.  This 
in  no  way  interfered  with  her  efficiency  in  making  soundings 
upon  the  bar,  or  in  piloting  the  ship  in  and  out.  The  owners  of 
the  Volanta  at  once  tied  up  their  craft  and  transferred  to  the 
Railroad  Company  their  contracts  for  carrying  the  mail  and 
express.  Later  on  I  succeeded  in  getting  the  express  company 
to  make  a  new  contract  with  us,  by  which  the  pay  on  the  route 
between  Yaquina  and  Newport  was  doubled. 

The  earnings  from  the  tug  Resolute  for  the  months  of  March, 
April,  May,  June,  July,  August,  and  September  have  been 
$3,251.76.  These  earnings  would  have  been  greatly  increased 
had  the  Company’s  summer  travel  to  Newport  reached  anywhere 
near  its  usual  proportions.  The  financial  stringency,  however, 
kept  everybody  at  home;  and  whereas  in  the  season  of  1892  we 
took  3,000  people  from  Portland  and  other  Southern  Pacific 
points  to  Newport,  the  business  this  year  was  less  than  one-third 
that  number. 

The  question  of  the  maintenance  of  the  tug  Resolute  at 
Yaquina  may  rightly  be  taken  up  here.  With  the  great  improve- 


17 


merits  which  have  been  made  in  the  bar  and  channel  by  the  jet¬ 
ties,  there  is  for  six  months  in  the  year  no  actual  necessity,  so 
far  as  the  safe  entrance  and  departure  of  the  steamer  is  con¬ 
cerned,  for  the  services  of  the  tug.  The  channel  is  now  straight 
from  buoy  to  buoy,  and  has  so  remained  for  the  year  past.  The 
bar  is  merely  a  hog-back.  During  the  past  summer  the  Willa¬ 
mette  Valley  has  repeatedly  come  in  without  the  assistance  or 
pilotage  of  the  tug.  I  consider  it,  however,  a  wise  measure  to 
maintain  the  tug,  both  as  a  measure  of  safety  during  the  stormy 
months,  and  in  view  of  the  fact  that  with  the  development  of  the 
railroad  the  shipping  from  the  port  of  Yaquina  will  largely 
increase,  and  a  remunerative  business  develop  in  towing  sailing 
ships  in  and  out  of  the  bay. 

Before  proceeding  to  a  consideration  of  the  rail  line,  it  may 
be  proper  here  to  discuss  the  ocean  terminal  facilities  at  Yaquina 
Bay.  Reference  should  be  made  to  the  map  of  the  bay  for  a 
clear  understanding  of  the  situation  there.  The  subject  of 
Yaquina  Bay  as  a  harbor  will  be  discussed  farther  on.  It  is  suf¬ 
ficient  here  to  state  that  the  bay  has  a  tidal  area  of  about  5 * 
square  miles. 

The  town  of  Newport,  with  a  population  of  500  people,  is 
located  just  within  the  entrance,  on  the  north  side  of  the  bay. 
Yaquina  City,  with  about  300  inhabitants,  is  located  three  miles 
farther  up  the  bay,  on  the  same  side  as  Newport.  The  location 
of  the  terminus  of  the  railroad  at  Yaquina  City  seems  to  have 
been  an  afterthought,  or  a  dernier  rcssort .  the  first  intention 
having  been  to  make  the  terminus  at  Newport,  where  it  properly 
should  be.  The  owners  of  the  water-front  at  Newport,  however, 
declining  to  make  a  free  gift  of  all  of  it  to  the  Company,  another 
terminus  was  sought.  There  appears  to  have  been  a  scheme  at 
one  time  to  form  a  deep-water  sea  harbor,  by  the  construction  of 
an  immense  sea-wall  on  the  north  side  of  Cape  Foulweather,  but 
the  fact  that  an  Indian  reservation  would  have  had  to  be  crossed 


2 


18 


to  reach  this  point,  and  the  high  price  at  which  the  adjoining 
land  was  held,  fortunately  forced  the  abandonment  of  this 
scheme. 

Much  bitter  feeling  was  engendered  between  the  managers 
of  the  railroad  and  inhabitants  of  Newport,  and  with  a  threat 
to  make  “grass  grow  in  their  streets,”  the  railroad  retired  three 
miles  up  the  Bay  and  made  Yaquina  City  the  final  terminus  of 
the  railroad.  All  things  considered,  a  location  more  illy  adapted 
for  the  purpose  could  hardly  have  been  found,  the  steep  bluffs 
running  directly  down  into  tide  water,  with  not  a  single  foot  of 
level  ground. 

The  Company  seems  to  have  realized  to  a  certain  extent  that 
Newport  was  the  proper  terminus,  for  a  survey  was  run  from 
Toledo,  a  station  nine  miles  east  of  Yaquina,  around  to  New¬ 
port.  The  present  line  from  Toledo  to  Yaquina  follows  the 
tortuous  windings  of  the  Yaquina  River.  To  maintain  this 
track  on  the  bank  of  the  river  miles  of  log  cribbing  were  put  in 
at  large  expense,  and  the  road  as  now  located  lies  for  several 
miles  at  the  foot  of  high  precipitous  banks,  composed  of  soft 
shale,  a  source  of  constant  danger  and  expense  to  the  Company 
by  reason  of  slides  and  the  filling  up  of  the  ditches.  The  log 
cribbing  is  now  decayed,  and  must  shortly  be  replaced  with  new 
cribbing  at  an  expense  of  about  $14,000,  or  riprapped  with  rock, 
which  last  would  cost  about  $10,000  on  this  section.  Had  the 
line  been  carried  around  on  the  first  survey  to  Newport  the 
present  expensive  location  would  have  been  avoided  and  a  sav¬ 
ing  made  of  about  three  and  one-half  miles  in  distance,  by 
reason  of  the  fact  that  the  distance  from  Toledo  to  Newport  is 
three  and  a  half  miles  shorter  than  it  is  from  Toledo  to  Yaquina. 

In  addition  to  this  saving  in  mileage  passengers  and  freight 
would  have  been  landed  directly  at  the  seashore,  instead  of 
three  miles  up  the  bay. 

By  an  act  of  the  Legislature,  approved  October  14,  1878, 


19 


all  of  the  tide  lands  upon  Yaquina  Bay  had  been  granted  to  the 
Railroad  Company. 

Colonel  Hogg  and  his  brother,  William  M.  Hoag,  had  prior 
to  this  acquired  that  portion  of  the  uplands  abutting  on  the 
water-front  on  the  north  shore  of  Yaquina  Bay  for  about  three 
miles  from  the  present  end  of  the  track  eastward.  By  resolution 
of  the  Board  of  Directors  of  the  Willamette  Valley  &  Coast 
Railroad  Company,  passed  on  April  22,  1884,  a  contract  was 
entered  into  with  William  M.  Hoag,  by  which  the  latter  granted  to 
the  Railroad  Company,  for  the  term  of  ninety-nine  years,  a  right 
of  way  forty  feet  wide  across  these  lands,  in  consideration  of  a 
deed  to  the  said  William  M.  Hoag  of  all  the  tide  and  overflowed 
lands  lying  between  such  uplands  and  the  nearest  boundary  of 
the  said  right  of  way,  and  a  strip  of  similar  tide  lands  150  feet  in 
width  along  the  outer  boundary  of  the  right  of  way.  On  the 
18th  of  December,  1885,  by  resolution  of  the  Board  of  Directors, 
the  proposition  of  Col.  T.  Egenton  Hogg  to  purchase  from 
the  Railroad  Company  for  $15,000,  in  first -mortgage  bonds  of 
the  Oregon  Pacific  Railroad  Company,  800  more  acres  of  these 
tide  and  overflowed  lands,  was  submitted;  bn  the  18th  day  of 

January,  1888,  at  the  request  of  Colonel  Hogg,  the  Board  rescinded 

% 

its  previous  resolution,  basing  its  action  on  the  rapidly  increasing 
value  of  these  lands  and  the  necessity  for  enlarged  room  for  track¬ 
age.  By  reference  to  the  map  it  will  thus  be  seen  that  this  fore¬ 
shore  and  intervening  tide  lands  are  owned  by  Colonel  Hoggand 
his  brother,  and  in  addition  a  strip  of  tide  land  150  feet  wide,  lying 
between  the  right  of  way  and  the  channel,  is  also  owned  bv  them 
—  the  railroad  has  little  or  nothing  left.  And  so  far  as  any 
extension  of  its  terminal  facilities  at  Yaquina  are  concerned,  it  is 
entirely  in  the  power  of  the  owners  of  these  tide  and  uplands. 

In  1881  and  1882  the  railroad  had  constructed  at  Yaquina,  at 
a  cost  of  $16,924.38,  a  station,  warehouse,  and  wharf,  and  in  1883 
and  1884  a  car-shop,  at  a  cost  of  $1,636.36.  The  Oregon  Devel- 


20 


opment  Company  was  organized  in  1884.  and  sometime  prior  to 
the  22dday  of  April  of  that  year  purchased  from  the  Railroad 
Company  the  warehouse,  wharf,  and  car-shops  above  referred  to 
for  a  lump  sum  of  $33,500. 

I  can  not  find  in  the  minute  books  of  either  the  Willamette 
Valley  &  Coast  or  the  Oregon  Pacific  Railroad  companies  any 
resolution  authorizing  the  sale  of  these  terminal  facilities,  but 
believe  that  such  a  resolution  was  passed  by  the  Executive  Com¬ 
mittee  of  the  Oregon  Pacific  Railroad  Company.  The  books  of 
the  Oregon  Pacific  Railroad  Company  show  that  the  Oregon 
Development  Company  was  charged  with  this  sum  of  $33,500  in 
account ,  but  I  can  find  no  record  of  the  actual  payment  of  this 
purchase  price.  Mr.  Charles  Hutchins,  the  accountant  for  the 
Oregon  Development  Company,  states  that  he  opened  the  books 
of  the  Development  Company  with  this  sum  as  assets. 

Now,  on  the  22d  day  of  April,  1884,  the  famous  contract 
between  the  Oregon  Development  Company,  and  the  Oregon 
Pacific  Railroad  Company  known  as  the  “Terminal  Contract,” 
was  duly  entered  into.  This  contract  recites  that,  “Whereas  the 
party  of  the  first  part  (the  Oregon  Pacific  Railroad  Company) 
being  unable  itself  to  provide  at  Yaquina  Bay,  for  the  purposes 
of  its  undertakings,  docks,  wharves,  warehouses,  car-shops,  and 
repair-shops,  has  applied  to  and  requested  the  Oregon  Develop¬ 
ment  Company,  party  of  the  third  part,  to  provide  at  Yaquina 
Bay  for  the  party  of  the  first  part  such  facilities  as  aforesaid,, 
which  the  said  party  of  the  third  part  has  agreed  to  do  upon  the 
terms  and  conditions  and  for  the  considerations  hereinafter 
expressed.” 

It  is  evident,  of  course,  that  the  Railroad  Company  had  pro- 
vided  for  itself  at  Yaquina,  prior  to  the  date  of  this  contract,  the 
very  wharves,  docks ,  car-shops ,  etc.,  which  the  contract  recites  it 
was  unable  to  provide  and  had  requested  the  Development  Com¬ 
pany  to  provide.  , 


This  contract  further  recites,  “  That  under  and  by  virtue  of 
its  powers  the  Oregon  Development  Company  had  acquired  cer¬ 
tain  docks,  wharves,  and  warehouse  property  at  Yaquina  Bay," 
and  agreed  to  lease  them  to  the  Railroad  Company  for  a  term  of 
three  years,  briefly  upon  these  conditions:  First,  that  the  Railroad 
Company  was  to  maintain  and  make  all  additions  to  the  property 
at  its  own  proper  expense;  second,  that  the  railroad  was  to  pay 
to  the  Development  Company  as  rental  for  the  use  of  the  wharf 
20  cents  per  ton  for  each  ton  of  freight  passed  over  the  wharf  in 
either  direction,  and  25  cents  for  each  passenger.  For  the  use 
of  the  car-shops  a  rental  of  $100  per  month  was  to  be  paid  to  the 
Development  Company.  This  contract  was  to  have  currency 
for  three  years  from  the  first  day  of  April,  1884,  and  settlements 
between  the  two  companies  were  to  be  made  every  thirty  days. 
The  rentals  accruing  under  this  agreement  averaged  about  $600 
per  month,  and  on  the  books  of  the  Oregon  Pacific  Railroad 
Company  were  credited  to  the  Oregon  Development  Company, 
acting  as  an  offset  to  the  $33,500  with  which  the  Oregon  Devel¬ 
opment  Company  was  charged  as  the  purchase  price  of  the 
property. 

With  reference  to  the  operation  of  this  contract,  Mr.  Hutch- 
ins  further  states  as  follows:  ‘‘Terminal  contract  distinctly  speci¬ 
fied  that  the  Oregon  Pacific  Railroad  Company  should  furnish 
the  Oregon  Development  Company  monthly  a  statement  of  the 
tonnage  and  passenger  business  passing  through  the  dock;  that 
such  settlements  were  never  made  until  just  after  the  appoint¬ 
ment  of  Colonel  Hogg  as  receiver,  which  occurred  October  28, 
1890,’’ or  over  three  years  after  the  expiration  by  limitation  of 
the  contract.  “That  at  this  time  he  called  the  attention  of  Mr. 
William  M.  Hoag  to  the  fact  that  the  terminal  contract  had 
expired  three  years  previously;  that  Mr.  Hoag  appeared  very 
much  taken  back,  and  excused  him  (Mr.  Hutchins)  from  the 
office  at  once,  but  within  a  few  moments  sent  for  him  again,  and 


22 


gave  him  instructions  to  make  a  journal  entry  at  the  heading  of 
the  account  in  the  Oregon  Development  books,' “  which  contract 
has  been  extended.” 

Mr.  Hutchins  further  states,  that  it  was  apparent  from  the 
Oregon  Development  Company’s  books  that  Mr.  William  M. 
Hoag  did  not  understand  the  provisions  of  the  terminal  con¬ 
tract,  for  all  charges  for  betterments,  repairs,  etc.,  were  charged 
on  the  Oregon  Development  books  to  the  Oregon  Development 
Company;  that  he  pointed  out  to  Mr.  Hoag  that  under  the  pro¬ 
visions  of  the  contract  these  were  proper  charges  against  the 
Oregon  Pacific  Railroad,  and  that  shortly  after  the  appointment 
of  Colonel  Hogg  as  receiver  he  (Hutchins)  was  instructed  to 
charge  back  all  these  amounts  against  the  Oregon  Pacific  Rail¬ 
road  Company. 

Under  the  operations  of  this  contract  the  rentals  accumulated 
up  to  the  6th  day  of  March.  1893,  to  the  amount  of  $12,155.71 
in  excess  of  the  original  purchase  price  of  $33,500,  and  this  bal¬ 
ance  now  stands  oh  the  books  of  the  Railroad  Company  as  a 
credit  to  the  Development  Company. 

The  transaction,  in  brief,  is  as  if  you  had  taken  my  house, 
agreeing  to  pay  me  for  it  $33,500;  had  then  rented  it  to  me  for 
$600  a  month,  and  when  the  rentals  aggregated  $33,500  you 
owned  the  property;  and  as  in  this  case  the  rentals  aggregated 
$12,000  more  than  the  purchase  price,  there  would  appear  to  be 
a  nice  little  bonus  due  you  from  me  for  the  privilege  which  I  had 
of  living  in  my  own  house. 

This  terminal  contract,  together  with  another  alleged  con¬ 
tract  between  the  Oregon  Pacific  Railroad  Company  and  the 
Oregon  Development  Company,  to  which  reference  will  be  m^de 
farther  on,  were  repudiated  by  the  present  receiver  on  March 
8,  1893,  and  he  took  formal  possession  of  the  wharf,  warehouse, 
car-shops,  etc. 

The  ocean  terminal  facilities  at  Yaquina  consist  of  a  piled 


wharf  with  a  frontage  500  feet  long,  a  portion  of  it  being  125 
feet  deep,  and  the  westerly  portion  75  feet  wide.  Upon  this 
wharf  is  a  frame  warehouse  225  feet  long  by  100  feet  wide. 
There  are  two  tracks  upon  the  wharf,  one  inside  of  the  house 
and  one  on  the  outer  edge  of  the  wharf.  The  warehouse  has  a 
tarred  paper  roof.  Both  the  warehouse  and  wharf  are  entirely 
unsuited  for  the  purpose  for  which  they  were  constructed, 
and  by  reason  of  their  manner  of  construction  are  costly 
and  expensive  to  maintain.  The  whole  structure  rests 
upon  piles  driven  in  tide  water,  there  being  some  800  piles 
underneath  the  structure.  By  reason  of  the  destructive  action 
of  the  teredo  these  piles  last  only  about  three  years,  and  to 
redrive  them  it  is  necessary  to  tear  up  the  floor  of  the  wharf, 
and  where  the  piles  are  underneath  the  structure  it  is  necessary 
to  cut  holes  in  the  roof,  or  to  remove  large  sections  of  it,  in 
order  to  drive  the  piles. 

The  roof  being  simply  of  tarred  paper,  coated  with  tar  and 
gravel,  and  of  very  flat  pitch,  leaks  like  a  sieve,  and  subjects 
the  Company  to  constant  claims  to  damage  for  merchandise 
being  wet. 

The  warehouse  is  barely  large  enough  to  enable  us  to  sort 
merchandise  cargoes,  and  on  account  of  the  weakness  of  the  sub¬ 
structure  —  the  fact  that  it  is  over  water  and  being  of  open  timber 
construction  —  is  infested  with  rats  —  makes  it  impossible  for  us 
to  store  grain  therein,  even  were  the  buildings  of  a  size  sufficient 
to  afford  the  necessary  room  for  that  purpose.  The  fact  that  the 
Company  has  no  suitable  warehouse  for  the  storage  of  grain 
at  tide-water  is  one  of  the  greatest  drawbacks  to  the  successful 
carrying  on  of  its  grain  business.  The  present  condition  of  the 
piling  and  caps  underneath  the  wharf,  the  flooring  of  the  wharf, 
and  the  roof  of  the  warehouse,  together  with  the  general  unsuit¬ 
ableness  of  the  entire  structure,  renders  it  unwise  to  expend 
anything  further  upon  it,  although  at  the  present  moment  the 


24 

/v  J 


expenditure  of  at  least  $1,000  is  almost  absolutely  required  to 
make  it  safe  to  run  an  engine  over. 

For  the  economical  handling  of  its  business  at  its  ocean 
terminus  the  Company  should  have  a  corrugated  iron  building 
of  not  less  than  400  by  200  feet  long,  with  a  concrete  floor,  with 
an  elevator  and  cleaner,  all  of  the  structure  being  located  upon 
solid  ground,  with  pile  truckway  srunning  out  to  a  longitudinal 
wharf  along  deep  water.  Such  a  building  could  be  constructed 
for  about  $9,500  —  would  be  practically  indestructible.  The  only 
portion  that  would  be  subject  to  decay  would  be  the  truck  ways 
and  deep-water  wharf,  which,  being  in  the  nature  of  an  ordinary 
piled  bridge,  could  be  readily  and  cheaply  repaired.  It  is 
believed  that  such  a  warehouse  could  be  made  a  “  call  house  ” 
on  the  San  Francisco  Board  of  Trade,  and  that  extremely  low 
rates  of  insurance  could  be  obtained  therefor.  It  would  give 
ample  room  for  the  handling  of  merchandise  cargoes  and  for  the 
storage  and  handling  of  about  4,000  tons  of  wheat  in  sacks.  Such 
a  warehouse  would  undoubtedly  be  a  powerful  factor  in  secur¬ 
ing  for  the  Company  its  proper  share  of  the  grain  traffic  from  the 
Willamette  Valley,  and  would  earn  a  handsome  return  upon  its 
cost,  through  the  medium  of  its  storage  charges,  and  at  the 
same  time  reduce  expense  of  handling  cargo.  As  the  bad  con¬ 
dition  of  the  ocean  warehouse  is  such  as  to  absolutely  demand 
immediate  action,  a  plan  for  a  new  warehouse  on  the  lines  sug¬ 
gested  above  is  submitted  herewith. 

RAIL  TERMINAL  FACILITIES  AT  YAQUINA. 

Below  will  be  found  a  list  of  all  the  Company’s  buildings  at 
Yaquina,  with  their  dates  of  construction  and  approximate  costs. 
These  costs  include,  in  many  instances,  expensive  betterments 
which  have  been  made  to  the  buildings.  Where  the  costs  are 
not  given  it  is  by  reason  of  the  fact  that  in  the  earlier  accounts  no 
attempt  at  distribution  of  accounts  was  made: 


25 


1881-82.  Warehouse  and  depot. . . $ 

1883- 84.  Car-shops  24  x  125  ft.  — .  1,636  36 

1886.  Machine-shops  50  x  196  ft . .  7,738  85 

1886- 90.  Foundry  50  x  50  ft. .  8,965  98 

1885.  Dwelling-house,  north  of  Hotel, 

16x32  ft. . 816  24 

1886.  Store  building  20  x  40  ft. . .  1,268  84 

1885-87.  Yaquina  Hotel,  100  x  50  ft., 

3-st01T . - .  u,4i7  °5 

1887.  Wash-house  near  hotel. .  130  40 

1884.  Blacksmith-shop  16  x  18  ft . .  578  66 

1884- 86.  Six-stall  round-house  58  x  108  ft.  1,872  37 

1884-85.  Bunk-house.... _ _  340  46 

1884.  Oil-house  13  x  37  ft _  20  09 

1886.  Sand-house  16x20  ft.. . .  267  82 

1887- 90.  Various  sidewalks  . 371  91 

1889.  Hose-house  . . 69  53 

1886.  Dwelling,  southeast  of  car-shop, 

* 

16  x  25  ft _ _ 130  00 

1884.  Wooden  turntable . .  922  27 

1886.  Track  scales . 1,332  73 


From  1881  to  1890,  $41,018.95  were  charged  to  the  construc¬ 
tion  of  and  betterments  to  station,  warehouse,  and  wharf  —  this 
includes  the  construction  and  cost  of  repairs  to  the  passenger 
and  freight  depot  and  the  ocean  wharf  and  warehouse  —  this 
being  ostensibly  sold  by  the  Railroad  Company  to  the  Develop¬ 
ment  Company;  $20,000  of  this  amount  is  for  betterments  to  the 
property  made  after  it  was  transferred  in  account  to  the  Devel¬ 
opment  Company. 

All  the  buildings  listed,  except  the  hotel,  are  of  rough  lumber 
and  without  paint.  The  foundry  has  a  galvanized  iron  roof. 
The  hotel  is  a  three-story  frame  structure,  ceiled  inside  in  place 
of  plastered,  and  of  cheap  construction.  It  contains  sixty  rooms. 


f  26 


It  is  located  on  a  shelf  cut  into  the  bluff,  at  an  elevation  of 
about  twenty  feet  above  the  track,  and  is  connected  with  the 
roadway  by  a  long  sidewalk  on  stilts. 

So  far  as  can  be  learned  it  never  paid  a  cent  upon  its  cost, 
and  the  present  receiver  has  been  entirely  unable  to  lease  it  to 
anyone  upon  any  terms,  by  reason  of  the  fact  that,  like  the  town 
of  Yaquina  itself,  it  is  unfortunately  situated.  There  is  almost 
absolutely  no  travel  to  Yaquina  City  itself  which  would  call  for 
a  hotel;  and  the  summer  travel  to  the  seacoast  can  not  be  per¬ 
suaded  to  stop  at  a  hotel  three  miles  from  the  beach.  If  the 
hotel  were  at  Newport  and  were  properly  conducted  it  could  be 
made  to  earn  a  good  return  on  its  cost. 

The  machine-shop  contains  the  following  tools: 
i  Engine  lathe,  io-foot  bed,  fair  condition. .$1,125  00 


1  Engine  lathe,  6  “  “  “  “  ..525  00 

1  Wheel-boring  engine,  good  condition,  but 

needs  new  foundation _ 1,575  00 

1  Hydrostatic  wheel  press,  fair  condition _  1,250  00 

1  Driving-wheel  lathe,  79-inch  swing  _ 3,928  00 

1  Wheel-grinding  machine,  no  good,  out  of  date  1,384  12 

1  Bolt  cutter,  No.  1,  fair  condition _  1,325  00 

1  Bolt  cutter,  No.  2,  very  fair  condition _  825  00 

1  Vertical  drill  press,  33-inch  adjustment,  very 

fair  condition _  500  00 

1  Planer  lathe,  26-inch  swing,  poor  shape _  I,5°°  00 

1  15-horse-power  engine  and  boiler,  consid¬ 
erably  the  worse  for  wear _  500  00 

Miscellaneous  tools,  such  as  portable  forges, 
hand  drills,  belting,  pulleys,  shafting,  and 
so  on,  about _ 500  00 


The  Company  is  entirely  unprovided  with  any  wood-working 
tools  whatever.  Car  repairs  are  therefore  done  at. a  tremendous 
disadvantage. 


27 


Foundry  Plant. — One  36-inch  iron  furnace,  one  small  brass 
furnace,  capacity,  with  ten  men,  per  day,  about  nine  tons  of  cast¬ 
ings;  one  small  rattler,  one  crane,  twelve  large  car-wheel  chills, 
one  small  car-wheel  chill. 

The  foundry  is  fitted  up  with  an  air-hoist  to  the  furnace,  and 
has  connected  with  it  an  air-hoist  drop  hammer  for  breaking- 
scrap,  erected  by  the  former  master  mechanic  at  a  cost  of  $1,200. 

Up  to  the  appointment  of  the  present  receiver  the  Company 
had  made  all  of  its  own  castings.  A  brief  investigation  was  con¬ 
vincing  that  the  castings  cost  the  Company  very  much  in  excess 
of  what  they  could  be  bought  for  in  the  open  market.  The  mas¬ 
ter  mechanic  was  found  to  be  most  expensive  in  his  methods. 
The  foundry  was  accordingly  closed,  and  by  an  arrangement 
with  the  Albany  Iron  Works  our  patterns  were  placed  with  them, 
they  agreeing  to  furnish  us  new  castings  in  exchange  for  our 
scrap  at  the  rate  of  2f  cents  per  pound  for  castings. 

The  cast-iron  wheels  formerly  made  at  the  Company’s  foundry 
weighed  530  pounds  apiece,  and  averaged  the  amazingly  low 
figure  of  3,000  miles.  Forty  thirty-three-inch  cast-iron  wheels 
have  been  purchased  from  the  Southern  Pacific  Company’s  shops 
at  Sacramento,  at  a  cost  to  the  Company  of  $12.47  apiece  on  the 
dock  in  San  Francisco.  These  wheels  weigh  600  pounds,  and 
on  the  Southern  Pacific  average  60,000  miles.  On  this  basis 
the  wheels  formerly  made  at  the  Company’s  shop  cost  $1 1 1.85 
apiece,  although  they  were  only  charged  at  $15.30. 

The  turn-table  has  been  recently  renewed  and  is  good  .for 
several  years. 

There  are  9,198  feet  of  side-track  at  Yaquina,  laid  with 
50-pound  steel  and  30-pound  iron.  All  of  the  yard  is  on  made 
ground. 

The  water  supply  at  Yaquina  is  derived  from  three  sources, 
first,  a  20,000-gallon  tank  situated  on  a  bench  on  the  hillside  and 
supplied  by  aspring.  The  water  from  this  tank  is  led  through 


1,038  feet  of  two-inch  pipe,  and  supplies  the  passenger  depot  and 
the  ocean  wharf. 

The  second  supply  is  from  two  canons  lying  back  of  the 
machine-shop,  the  springs  in  these  canons  merely  running  into 
a  head-box.  This  source  supplies  a  tank  at  the  round-house  for 
the  use  of  locomotives. 

The  third  supply  is  from  a  dam  in  a  canon  on  land  owned  by 
William  M.  Hoag,  distant  about  a  quarter  of  a  mile  from  the 
main  track.  The  water  from  this  dam  is  brought  down  through 
six-inch  pipe.  This  water  is  not  used  at  any  point,  but  is 
regarded  simply  as  fire  protection. 

This  water  supply  requires  some  further  explanation.  The 
dam  was  built  and  the  pipe  laid  and  paid  for  by  the  Railroad 
Company,  the  understanding  being,  however,  that  when  com¬ 
pleted  Mr.  Wm.  M.  Hoag  should  purchase  it  from  the  Railroad 

% 

Company.  The  dam  is  located  on  land  owned  by  Mr.  Hoag. 
The  cost  of  it,  not  including  the  pipe  and  laying,  up  to  1890,  was 
$5,861.61.  The  engineer  who  had  charge  of  the  construction  of 
the  dam  states  that  the  location  was  selected  by  Mr.  Wm.  M.  Hoag 
personally.  The  location  was  faulty,  being  at  the  base  of  a  gigantic 
tree,  whose  decaying  roots  furnished  ready  channels  of  leakage. 
While  the  dam  held  a  certain  amount  of  water,  it  did  not  by  any 
means  come  up  to  expectations,  and  Mr.  Hoag  declined  to  accept 
the  dam  from  the  Company,  but  did  accept  the  pipe  laid  there¬ 
from,  and  in  a  letter  to  Colonel  Hogg,  under  date  of  March  4, 
1891,  expressed  his  intention  of  paying  therefor.  The  books  of 
the  Oregon  Pacific  Railroad  Company  show  that  the  cost  of  the 
pipe  and  laying  were  charged  to  Mr.  William  M.  Hoag  in  account. 
No  bills  for  water  furnished  to  the  Company  at  Yaquina  were 
presented  by  Mr.  Hoag  until  October  28,  1890,  immediately  after 
the  appointment  of  Colonel  Hogg  as  receiver.  After  this  date 
Mr.  Hoag  instructed  the  Auditor  to  make  monthly  bills  for  the 
water.  None  of  the  bills,  except  those  presented  since  the 


present  receivership,  show  to  what  buildings  water  is  furnished, 
none  show  the  source  of  supply.  Bills  presented  since  the 
present  receivership  read,  “  For  water  furnished  to  station  and 
round-house.”  Mr.  William  M.  Hoag’s  personal  account  was 
written  up  shortly  after  the  appointment  of  Col.  T.  Egenton 
Hogg  as  receiver.  A  copy  of  the  voucher  paid  to  and  receipted 
by  William  M.  Hoag,  embodying  the  statement  of  his  personal 
account,  shows  that  he  was  paid  for  water  furnished  the  Com¬ 
pany  at  Yaquina  $6,133. 

A  bill  was  also  made  against  the  Oregon  Developing  Com¬ 
pany  for  water  furnished  to  their  steamships  at  Yaquina  to  the 
amount  of  $50  per  month.  This  $50  per  month  was  in  reality 
paid  by  the  Railroad  Company,  for  by  the  terms  of  an  operating 
contract  between  the  Railroad  Company  jyid  the  Development 
Company — which  will  be  referred  to  later  on — the  Railroad 
Company  paid  all  of  the  expenses  of  operating  the  Development 
Company’s  steamers.  None  of  the  bills  for  water  furnished 
recited  explicitly  from  what  source  the  water  came;  and  it  was 
currently  understood,  and  was  so  stated  by  the  master  mechanic 
who  was  in  charge  of  the  water  supply,  to  Messrs.  Rand  & 
Wood,  that  the  charge  for  water  was  for  water  from  the  dam. 
The  fact  is,  however,  that  no  water  was  furnished  from  the  dam,, 
by  reason  of  the  fact  that  its  pipes  terminate  in  fire  hydrants 
only. 

The  pipes  from  the  water-tank  on  the  hill  connected  with  the 
ocean  wharf  and  the  depot,  and  the  natural  supposition  is,  there¬ 
fore,  that  the  charge  was  made  for  the  water  from  this  tank. 

It  is  difficult  to  understand  just  what  water  Mr.  Hoag  was 
paid  for,  and  for  which  he  still  continues  to  make  bills  against 
the  Company.  It  seems  plain  that  it  can  not  be  for  water  from 
the  dam,  for  the  reason  that  the  Company  receives  no  water  what¬ 
ever  from  the  dam,  nor  can  it  be  for  water  furnished  to  the 
round-house,  for  the  two  springs — above  referred  to  —  which 


30 


furnish  this  supply  are  located  on  land  owned  by  the  Company 
purchased  from  a  man  by  the  name  of  Weiser.  This,  in  spite  of 
the  fact  that  the  last  bills  rendered  for  this  water  in  favor  of  Mr. 
Hoag  say,  “For  water  furnished  to  round-house.”  It  must  be, 
therefore,  for  water  furnished  from  the  tank  on  the  hill.  Now, 
the  only  water  used  by  the  Company  from  this  supply  is  a  three- 
quarter-inch  faucet  at  the  depot,  and  it  would  seem  that  $40  a 
month  for  such  supply  would  be  out  of  all  proportion. 

The  receiver  has  not  paid  any  bills  for  water  furnished  at 
Yaquina  since  March  6th. 

Considerable  extra  trackage  is  needed  at  the  Company’s 
ocean  terminus,  but  it  is  difficult  to  see  how  this  can  be  got  at 
Yaquina,  both  by  reason  of  the  natural  disadvantages  and  the 
unnatural  ones  caused  by  private  ownership  of  land. 

The  shops  are  badly  located,  being  at  the  extreme  end  of  the 
road.  It  would  conduce  greatly  to  the  more  economical  work¬ 
ing  of  the  road  if  they  were  more  centrally  located.  Albany  is 
obviously  the  proper  location  for  the  shops,  and  there  is  reason 
to  believe  that  that  city  would  give  a  liberal  bonus  in  land  and 
cash  to  secure  them.  The  Company  already  has  a  first-class 
eight-stall  brick  round-house  there,  which  would  only  need  the 
addition  of  four  stalls  to  provide  sufficient  engine  room.  The 
only  difficulty  in  the  matter  is  the  fact  that  the  round-house  is 
on  ground  owned  by  William  M.  Hoag. 

MAIN  TRACK. 

The  main  track  from  Yaquina  to  end  of  track,  141^  miles, is 
made  up  as  follows: 

Thirty  miles,  of  50-pound  Krupp  steel;  14^  miles,  50-poutid 
W.  C.  &  D.  steel;  20  miles,  50-pound  Darlington  steel;  21  miles, 
50-pound  Barrow  steel;  56  miles,  56-pound  Barrow  steel. 
Gauge  4  feet  8|-  inches. 

The  sections  of  the  different  rails  are  as  follows:  Krupp,  W. 


31 


C.  &  D.,  and  Darlington,  50-pound,  2-inch  by'4-inch  by  3f--inch; 
Barrow,  50-pound,  2\  by  3f  by  3J;  Barrow,  56-pound,  by  4 
by  4b 

A  detailed  statement  of  the  location  of  the  different  brands 
of  steel  will  be  found  in  one  of  the  books  of  original  documents 
submitted  herewith. 

The  Company  has  no  steel  on  hand  in  Oregon,  with  the 
exception  of  about  one  rail  per  mile  for  repairs.  Some  of  the 
50-pound  steel  is  somewhat  worn.  That  on  Nashville  Hill, 
where  we  have  five  miles  of  2  per  cent  grade,  is  in  perhaps  the 
worst  condition;  none  of  it,  however,  is  bad.  The  56-pound 
steel  is  in  good  condition. 

No  new  steel  is  required  with  the  present  traffic,  or  with  any 
considerable  increase  in  traffic.  The  track  is  laid  with  broken 
joints  and  23-inch  angle  bars  east  of  Corvallis,  but  without  nut- 
locks;  steel  laid  west  of  Corvallis  is  laid  with  fish-plates. 

The  Company  has  in  side-tracks  about  four  miles  of  new 
56-pound  Barrow  steel,  which  should  be  taken  out  and  relaid  on 
Nashville  Hill,  replacing  the  50-pound  steel  now  there.  While  in 
any  future  extensions  it  would  be  wise  to  lav  somewhat  heavier 
steel,  say  66-pound,  yet  the  writer  does  not  deem  it  necessary,  or 
that  it  would  be  an  economical  policy,  to  change  any  of  the  steel 
now  in  the  main  track,  except  on  Nashville  Hill,  or  in  a  few 
small  spots  were  it  is  exceptionally  worn  —  certainly  not  with  the 
present  traffic,  nor  with  double  the  traffic.  And  in  view  of  the  fact 
that  ties  are  so  much  cheaper  in  this  country  proportionately  than 
steel,  I  am  of  opinion  that  it  would  be  economy,  in  case  of  a  con¬ 
siderable  increase  in  traffic,  to  get  the  full  life  out  of  the  present 
steel  by  closely  tieing,  rather  than  contemplate  the  very  serious 
expense  of  heavier  steel. 

The  Company  has  fourteen  miles  of  side  track,  made  up  as 
follows:  3,878  feet  of  50-pound  Krupp  steel;  1,373  feet  of  50- 
pound  Darlington  steel;  1,226  feet  of  50-pound  Barrow  steel; 


7,54°  feet  of  50-pound  W.  C.  &  D.  steel;  20.980  feet  of  56-pound 
Barrow  steel;  27,918  feet  of  30-pound  iron. 

Side-track  facilities  are  ample  at  all  stations  for  a  consider¬ 
able  increase  in  traffic. 

The  road  is  ballasted  as  follows,  commencing  at  Yaquina: 

Mile-post  1  to  42,  dirt  ballast;  42  to  45^,  light  bed  of  rock 
ballast;  45^  to  46^,  mostly  dirt  ballast,  with  few  scattered 
patches  of  rock;  46^  to  49 a  light  bed  of  rock  ballast;  49 J  to 
71-^,  mixture  of  rock  and  dirt;  71J-  to  102^,  light  bed  of  gravel; 
102^  to  1 1 2,  light  bed  of  rock;  112  to  113,  not  ballasted;  113  to 
1 19,  coarse  gravel  and  rock;  119  to  131^,  light  bed  of  rock; 
131^  to  1411%,  not  ballasted. 

Since  the  road  was  placed  in  the  hands  of  the  present 
receiver,  the  finances  of  the  Company  would  not  allowT  of  any 
extensive  amounts  expended  in  the  way  of  ballast,  yet  a  system¬ 
atic  effort  has  been  made,  by  using  the  regular  section  force  and 
regular  trains  only,  to  improve  the  ballast  on  curves,  with  decid¬ 
edly  beneficial  results. 

There  are  numerous  points  along  the  line  where  excellent 
ballast,  both  sand,  gravel,  and  broken  rock,  can  be  obtained. 
At  mile-post  132  there  appears  to  be  an  endless  supply  of  finely 
broken  rock  of  a  very  hard  nature,  which  would  cost  about  50 
cents  a  yard  to  load  on  the  cars. 

CROSSINGS. 

There  are  the  following  railroad  crossings  in  the  track: 

Southern  Pacific  crossing  over  river  track  at  Corvallis,  right- 
angle  crossing. 

Southern  Pacific  crossing  just  east  of  Corvallis,  18  degrees 
27  minutes. 

Southern  Pacific  crossing  over  main  track  at  Albany,  73 
degrees  15  minutes. 

hirst  Southern  Pacific  crossing  over  river  track  at  Albany,  43 
degrees  40  minutes. 


33 


Second  Southern  Pacific  crossing  over  river  track  at  Albany, 
16  degrees  i  minute. 

These  crossings  are  all  maintained  by  the  Oregon  Pacific 
Railroad  Company. 

Albany  Street  Railway  crossing  at  Albany,  right  angle; 
maintained  by  the  Albany  Street  Railway  Company. 

Southern  Pacific  crossing  at  Shelburne,  27  degrees  21  min- 

«  « 

utes;  maintained  by  the  Southern  Pacific  Company  since  1892. 

TIES. 

With  the  exception  of  a  short  piece  of  track,  which  is  laid 
with  redwood  brought  from  California,  the  track  is  entirely  tied 
with  6  x  8  fir  ties,  with  an  average  of  about  2,700  to  the  mile. 
Ties  have  been  put  in  track  for  repairs  as  follows  : 


1886  _ _ _ _  2,114 

1887  _  1,887 

1888  _ _ _ _ _  r ,  2  89 

1889  -  5,517 

1890  -  4,572 

1891  _ _ _ _  9,828 

1892  - - - 32,813 

1893,  to  March  5th . 4,388 

1893,  March  5th  to  October  ist__ . 26,000 


Twenty-six  thousand  ties  have  been  put  under  during  the 
present  receivership.  A  great  majority  of  the  ties  in  track  are 
hewed,  and  east  of  Albany  a  good  many  ties  were  put  in  that 
were  got  out  of  second-growth  timber  ;  having  so  much  sap- 
wood,  these  have  decayed  very  rapidly. 

The  writer,  while  acting  as  superintendent,  induced  the  Com¬ 
pany,  about  eighteen  months  ago,  to  adopt  sawed  ties,  and  since 
then  no  others  have  been  used.  The  sawed  tie  being  freed  from 
the  sap-wood  lasts  longer,  and  all  being  of  even  thickness 
secures  more  even  bearing.  Good  6x8  fir  ties  sawed  from 
large  timber  cost,  delivered  on  cars,  from  17  to  19  cents 
3 


34 


apiece.  For  stiffness  and  strength  the  red  and  yellow  fir 
makes  good  tie  timber.  Its  average  life  in  well-trimmed  ballast 
and  under  ordinary  traffic  is  about  eight  years  ;  in  mud  ballast 
this  is  reduced  to  about  five  years. 

The  comparatively  large  amount  of  ties  put  in  during  the 
present  receivership  was  absolutely  demanded  by  the  necessity 
of  making  the  track  safe,  and  in  view  of  the  lack  of  ballast  in 
some  places  the  track  is  in  very  fair  condition. 

With  reference  to  the  track,  the  State  Board  of  Railroad 
Commissioners  make  the  following  statement  in  their  report  to 
the  present  receiver  of  their  inspection  of  the  Oregon  Pacific 
Railroad  :  “  The  road-bed  was  found  to  be  in  good  condition, 
except  that  occasional  ties  were  needed.”  And  the  present 
chairman  of  the  Board  took  occasion,  on  their  last  inspection, 
which  occurred  a  few  days  ago,  to  compliment  the  Company  on 
its  fine  track. 

SWITCHES. 

Split  spring  switches  are  the  only  kind  in  use  on  the  road. 
The  switch-stands  have  never  been  provided  with  switch-lights, 
probably  by  reason  of  the  fact  that  so  few  trains  are  run  at  night. 

GRADES  AND  CURVES. 

The  limiting  grade  between  Yaquina  and  Corvallis  going 
east  is  confined  to  five  miles  of  2  per  cent  grade,  lying  between 
Nashville  and  the  summit  of  the  Coast  Range.  Going  west,  the 
limiting  grade  is  iyW  per  cent,  lying  between  Philomath  and  the 
summit  of  the  Coast  Range.  Going  east,  on  the  Cascade  Divis¬ 
ion,  the  limiting  grade  is  iTW  per  cent  to  the  present  end  of  the 
track.  Beyond  the  present  end  of  track,  on  the  located  line,  the 
limiting  grade  is  twenty  miles  of  2  per  cent,  by  which  the  sum¬ 
mit  of  the  Cascade  Range  is  reached.  On  the  east  slope  of  the 
Cascades  there  are  seven  miles  of  2  per  cent  grade. 

The  location  across  Eastern  Oregon  shows  nothing  heavier 


35 


than  iyW  per  cent.  The  curvature  at  no  point  exceeds  io  per 
cent,  and  all  curves  are  equated. 

BRIDGING. 

The  total  length  of  all  bridges  west  of  Albany  is  30,156  feet; 
east  of  Albany,  12,509  feet,  making  a  total  of  a  little  over  eight 
solid  miles  of  bridging  on  the  constructed  line.  There  are 
twenty-two  bridges  over  the  Mary’s  River,  and  fifteen  over  the 
Yaquina  River.  Included  in  the  bridging  are: 

One  combination  steel  and  wood  bridge  thirty-four  feet  long. 

Eighteen  ioo-foot  Howe  Truss  Spans. 

Three  70-foot  “  “  “ 

Two  17 1 -foot  “  “  “ 

Two  147-foot  “  “  “ 

One  130-foot  “  “  “ 

There  are  nine  two,  three,  and  four  deck  bridges.  The  con¬ 
dition  of  all  bridges  on  the  line  is  good.  Those  west  of  Cor¬ 
vallis  were  figured  for  a  fifty-ton  engine,  followed  by  a  rolling 
load  of  2,000  pounds  to  the  foot. 

Between  Corvallis  and  the  first  crossing  of  the  Santiam  River 
(bridge  180)  they  are  figured  for  a  rolling  load  of  3,000  pounds 
to  the  foot.  From  the  Santiam  River  east  the  bridging  is 
heavier,  being  figured  for  a  double-header,  consisting  of  two 
eighty-ton  engines. 

A  careful  estimate  of  the  repairs  needed  to  put  all  bridges  in 
good  condition  for  next  twelve  months,  including  labor  and 
material,  foots  up  $10,029.06. 

A  statement  will  be  found  in  Volume  1  of  original  documents 
showing  construction  of  each  bridge  on  the  road  in  detail,  its 
present  condition,  and  repairs  needed. 

None  of  the  bridges  have  ever  been  treated  to  a  coat  of  paint. 
The  principal  spans  should  be  painted. 

Both  by  reason  of  the  demands  of  the  State  Railroad  Com¬ 
missioners  and  the  actual  condition  of  the  bridges,  a  large  amount 


36 


has  had  to  be  expended  by  the  present  receiver  on  bridge  repairs, 
amounting,  from  March  6th  to  September  30th,  to  $14,675.40. 

TUNNELS. 

There  are  three  tunnels  upon  the  line,  all  lying  west  of  the 
summit  of  the  Coast  Range.  Tunnel  No.  1  is  located  at  mile¬ 
post  22,  east  from  Yaquina;  total  length,  750  feet;  length  of 
timber  approach,  74  feet.  This  tunnel  is  18  feet  high,  14  feet 
wide  at  the  bottom,  and  15  feet  wide  at  the  top.  Segments  are 
composed  of  12  x  12  timber,  backed  by  a  wall  of  4x12;  repairs, 
including  labor  and  material,  are  needed  to  the  amount  of 
$929.78. 

Tunnel  No.  2  is  located  at  mile-post  42;  total  length,  460 
feet.  Same  section  and  construction  as  No.  1.  In  good  repair. 

Tunnel  No.  3  located  at  mile-post  44;  length,  700  feet;  same 
section  and  construction  as  No.  1.  In  good  condition. 

BUILDINGS. 

A  full  list  of  the  buildings  at  Yaquina  was  given  under  the 
head  of  “Terminal  Facilities.”  Taking  the  stations  in  rotation 
from  Yaquina  east,  the  Company  has  the  following  buildings: 

Toledo. —  New  brick  depot,  20x60  feet,  Section  Tool 
House,  10x12.  This  brick  depot,  being  the  only  one  in  the 
State  of  Oregon,  requires  some  explanation.  Toledo,  the  county- 
seat  of  Lincoln  County,  is  the  largest  town  between  Corvallis 
and  Yaquina  Bay.  The  citizens  there  had  been  very  anxious, 
and  were  entitled  to  depot  accommodations;  but  owing  to  a 
quarrel  between  the  former  management  and  some  of  the  citi¬ 
zens,  the  matter  in  dispute  being  a  twenty-foot  strip  of  land, 
much  ill-feeling  had  been  engendered,  and  no  depot  had  ever 
been  provided  there,  although  the  citizens  of  Toledo  had  made  a 
demand  on  the  railroad  commissioners  asking  that  the  Company 
be  forced  to  provide  reasonable  accommodations  there.  Believ¬ 
ing  it  bad  policy  to  have  any  of  its  patrons  so  badly  dissatisfied, 


3? 


the  present  receiver  took  some  pains  to  mollify  these  people,  and 
succeeded  even  in  inducing  them  to  subscribe  $500  for  the 
erection  of  a  depot  at  Toledo.  The  Company  has  had  on  hand 
at  Yaquina  for  many  years  about  400,000  brick,  which  were 
brought  from  San  Francisco  for  the  purpose  of  erecting  at 
Yaquina  a  large  brick  depot  and  general  office  buildings.  The 
first  cost  of  the  brick  was  $9,000.  The  purpose,  fortunately,  had 
never  been  carried  out — for  it  would  manifestly  have  been 
poor  policy  to  have  had  its  general  offices  at  one  end  of  the  road, 
when  it  were  possible  to  place  it  more  midway.  These  brick  had 
made  so  many  trips  to  San  Francisco  as  ballast  in  the  years  gone 
by  that  their  angles  had  been  worn  round.  By  using  these 
brick  in  the  construction  of  the  depot  it  was  figured  that  the 
$500  subscribed  by  the  citizens  would  pay  for  the  entire  cost  of 
erecting  the  building.  The  plan  was  accordingly  carried  out 
and  a  neat  and  substantial  brick  depot  has  been  erected  without 
practically  any  expense  to  the  Company.  The  citizens  of 
Toledo  are  delighted  with  the  acquisition,  and  harmony  reigns 


supreme. 

Storrs: 

Section  House _ 16  x  20 

Old  China  House . 10  x  12 

Tool  House _ 10  x  12 

Chitwood: 

Station  House . . 16  x  24 

Section  House _ __io  x  16 

Tool  House . . 12  x  12 

Nortons: 

China  House . 16  x  19 

Tool  House _ 10  x  12 

Nashville: 

Station  Building . 16  x  24 

Old  China  House.. . 16  x  18 


38 


Tunnel  No.  2: 

Watchman’s  House _ 12  x  17 

Tunnel  No.  i: 

Tool  House _  8x  8 

Summit: 

Station  House _ 16  x  40 

China  House _ 16  x  24 

Tool  House _ 10  x  12 

Harris: 

Station  House _ 16  x  24 

China  House _ ---17  x  24 

Tool  House,  Sec _ _ 10  x  12 

Tool  House _ 12  x  14 

Mile-post  64: 

Section  House _ 16  x  20 

Tool  House _ 10  x  12 

China  House _ 10  x  16 

Wren’s: 

Station  House _ 10  x  14 

Freight  House _ 12  x  16 

Philomath: 

Station  House _ _ 18  x  32 

Corvallis: 


Station  House,  two-story,  40  x  65  feet,  located  upon 
land  owned  by  Wm.  M.  Hoag,  for  which  rent  is  de¬ 
manded  at  the  rate  of  $40  per  month. 


Oil  Paint  Shop . . . 24  x  60 

Old  China  House _  9x24 

Tool  House  . . . . . . .  10  x  12 


Two-story  frame  dwelling  on  Front  Street. 


39 


Albany: 

Station  House _ _ 20  x  60 

Battery  House _ 10  x  12 

City  Ticket  Office _ 11  x  14 

Eight-stall  brick  Round-house _ 65  x  173 

China  House _ 10x32 

China  House _ _ _ 10  x  14 

Three  Tool  Houses,  each _ 10  x  12 

Munkers: 

China  House _  _ 12  x  14 

Kings: 

Section  House . . 16  x  20 

Watchman’s  House _ _ _ 10  x  14 

China  House _ _ 16  x  24 

Tool  House _ _ _ _ 10  x  12 

Lyons: 

Section  House _ _ _ 16  x  20 

China  House__ . . . . . . ..17  x  24 

Tool  House . . . 10  x  12 

Station  House _ _ _ _ 12  x  22 

Mill  City: 

Section  House _ _ _ _ _ ..28  x  29 

'Fool  House . . . . . 18  x  30 

Niagara : 

Section  House . . . 16  x  20 

China  House . . . . . 16  x  24 

Section  18: 

Section  House . . 16  x  20 

China  House . . . . . 16  x  24 

Section  19: 

Section  House . . 16  x  20 

China  House . 16  x  24 


40 


* 


This  last  does  not  include  a  number  of  small  sheds  and 
shacks.  All  of  the  buildings  listed — with  the  exception  of  the 
station  houses  at  Corvallis  and  Toledo,  and  Albany  round-house — 
are  rough  board,  unpainted  structures. 

Our  present  needs  in  the  way  of  new  buildings  are  small.  At 
Philomath,  a  new  passenger  and  freight  depot  should  be  built  at 
a  cost  of  about  $800  to  $1,000.  It  is  believed  that  the  citizens 
could  be  induced  to  subscribe  a  portion  of  this  amount,  and  by 
using  brick  from  Yaquina,  which  is  practically  useless  for  any 
other  purpose,  a  substantial  and  commodious  building  could  be 
erected  for  this  figure. 

At  Albany  larger  and  better  accommodations  are  needed  than 
anything  we  have  there.  The  present  freight  and  passenger 
depot  is  so  much  out  of  the  way  that  it  was  found  necessary, 
several  years  ago,  to  lay  a  switch  over  to  the  vicinity  of  the 
Southern  Pacific  depot,  as  much  of  our  travel  is  interchanged 
with  them.  The  distance  between  the  two  depots  is  about  a 
quarter  of  a  mile,  and  our  passenger  trains  now  back  over  there 
to  receive  and  unload  their  passengers  and  baggage.  It  is  a 
clumsy  arrangement,  but  under  present  circumstances  the  best 
that  can  be  done.  We  have  to  maintain  a  small  ticket  office  near 
the  Southern  Pacific  depot.  It  does  not  seem  probable  that  any 
arrangements  could  be  made  with  the  Southern  Pacific  for  the 
use  of  their  depot,  so  that  at  present  there  seems  nothing  to  do 
but  to  keep  up  the  present  cumbersome  arrangements,  or  procure 
ground  as  close  to  the  Southern  Pacific  as  possible  and  erect  a 
suitable  passenger  station. 

Albany,  however,  is  the  most  important  town  upon  the  road, 
and  the  Company’s  general  track  and  depot  facilities  there  are 
in  bad  shape.  The  round-house  is  located  upon  ground  owned 
by  Wm.  M.  Hoag,  for  which  he  regularly  presents  a  bill  for 
rental  at  the  rate  of  $42  per  month.  In  view  of  all  the  circum¬ 
stances,  the  writer  is  not  prepared  to  suggest  just  what  should  be 


41 


done  at  this  point  until  he  has  had  opportunity  for  a  careful 
study  of  the  situation. 

It  may  be  proper  to  state  here  that  the  Company  owns  no 
grain  warehouses  along  its  lines.  The  elevators  at  Munkers, 
Philomath,  and  Wrens,  and  the  flat  warehouse  at  Blodgett’s,  are 
claimed  as  the  property  of  the  Oregon  Development  Company  ; 
and  in  order  to  secure  their  operation  in  the  interests  of  the 
Company  the  receiver  has  had  to  rent  these  elevators  and  ware¬ 
houses  from  the  receiver  of  the  Oregon  Development  Company, 
at  a  rental  of  one  cent  per  bushel  for  all  grain  passing  through 
them.  The  receiver  has  in  turn  re-leased  these  houses  to  a  rep¬ 
resentative  of  a  San  Francisco  grain  firm  at  the  same  rental. 

The  necessity  for  the  construction  and  the  ownership  by  the 
Company  of  grain  warehouses  at  various  points  along  its  lines 
will  be  more  fully  considered  under  the  head  of  “Traffic.” 

Of  the  various  buildings  owned  by  the  Company  the  receiver 
has  rented  a  small  dwelling  at  Yaquina  for  $2  per  month,  and 
the  dwelling-house  at  Corvallis  for  $10  per  month. 

The  general  offices  of  the  Company  are  located  at  Corvallis, 
on  the  second  floor  of  the  building  owned  by  the  banking  firm 
of  Hamilton,  Job  &:  Co. 

Exclusive  of  tiie  hallway,  4,000  square  feet  of  floor  surface  is 
occupied.  This  floor  space  is  cut  up  into  eight  rooms.  Prior  to  the 
6th  of  March  a  rental  of  $71  per  month  was  charged  for  these 
offices.  The  present  receiver  secured  a  reduction  of  this  rental 
on  March  18th  to  $60  per  month,  which,  considering  space  and 
the  location,  is  considered  a  reasonable  rental. 


TURN-TABLES. 

Fifty-foot  wooden  turn-tables  are  located  at  Yaquina,  Nash¬ 
ville,  Corvallis,  and  Detroit.  The  one  at  Corvallis  is  available 
for  use  elsewhere,  a  “  Y  ”  having  been  put  in  there. 


42 


TELEGRAPH  LINE. 

The  telegraph  line  is  the  property  of  the  Railroad  Com¬ 
pany.  That  portion  from  Yaquina  to  Corvallis  was  built  in  1882 
and  1883;  from  Corvallis  to  the  Britenbush,  1886  to  1889.  The 
line  is  strung  from  standard  No.  9  wire,  with  fir  poles,  averaging 
thirty  to  the  mile.  The  total  first  cost  of  the  line  was  $11,655.12, 
and  the  average  annual  charge  for  repairs  has  been  about  $1,225.- 
04,  this  including  $900  per  annum  fora  lineman.  The  Company 
does  some  commercial  business,  gross  receipts  from  which 
amounted  in  1892  to  $1,483.09.  This  showed  so  smali  a  net 
earning,  amounting  to  only  about  $250,  that  the  present  receiver 
has  endeavored  to  lease  the  line  to  the  Western  Union  Tele¬ 
graph  Company,  or  to  the  Pacific  Postal  Telegraph  Company. 
The  terms  of  the  agreement  proposed  to  the  telegraph  com¬ 
panies  were  briefly  as  follow\s: 

1.  The  lessee  to  maintain  the  plant  and  furnish  all  labor 
and  material  for  repairs  and  operation,  on  requisitions  to  be 
approved  by  the  General  Superintendent  of  the  Railroad  Com¬ 
pany. 

2.  The  lessee  to  pay  one-half  the  salary  of  the  line  repairer. 

3.  All  receipts  for  commercial  business  to  be  remitted  direct 
to  the  lessee,  30  per  cent  of  so  much  of  the  receipts  as 
apply  to  the  Railroad  Company’s  wire  to  be  repaid  to  the  Rail¬ 
road  Company  by  the  lessee. 

4.  The  lessee  to  allow  the  Railroad  Company,  as  monthly 
rental  for  the  use  of  its  wires  and  facilities,  $250  worth  of  free 
telegraphing  over  the  lines  of  the  lessee  in  the  States  of  Cali¬ 
fornia,  Oregon,  and  Washington,  and  $50  of  free  telegraphing 
per  month  between  any  of  the  offices  of  the  lessee  in  the  States 
named  above  and  the  cities  of  New  York  and  Philadelphia. 

5.  The  Railroad  Company  to  have  full  use  of  its  wires  for 
the  transaction  of  its  business  and  the  discharge  of  its  trains. 

6.  Should  the  Railroad  Company  extend  its  telegraph  lines 


\ 


43 

during  the  life  of  the  agreement,  the  extended  line  shall  be  con¬ 
sidered  as  coming  within  the  terms  of  the  agreement. 

Under  the  present  conditions  it  seemed  to  be  useless  to  ask 
for  a  cash  rental,  and  as  the  Company’s  business  is  scattered  from 
Portland  to  San  Francisco,  requiring  a  considerable  use  of  com¬ 
mercial  wire,  practically  the  same  consideration  would  be  received 
by  the  Railroad  Company  by  the  payment  of  the  rental  in  free  tel¬ 
egraphing.  On  the  basis  of  the  Railroad  Company’s  payments 
for  telegraphic  service  over  commercial  lines,  and  the  saving  to 
the  Company  in  repairs  and  maintenance  contemplated  in  the 
agreement,  it  was  calculated  the  proposed  contract  would  save 
the  Railroad  Company  $2,700  per  annum  over  and  above  the  net 
earnings  of  the  line  as  operated  at  present.  The  largest  incent¬ 
ive  to  the  lessee  was  considered  to  lie  in  the  last  proposition  of 
the  agreement. 

The  Western  Union  Telegraph  Company  has  declined  to  take 
the  lease  of  the  line,  on  two  grounds;  first,  that  no  permanent  agree¬ 
ment  could  be  made  with  the  receiver;  and  second,  that  their  infor¬ 
mation  led  them  to  believe  that  extensive  repairs  would  be  needed 
to  enable  them  to  handle  the  business  according  to  their  standard. 
Negotiations  are  still  pending  with  the  Pacific  Postal  Telegraph 
Company,  with  a  fair  prospect  of  being  successfully  carried 
through. 

The  line  is  in  fair  condition,  but  about  $600  should  be 
expended  in  setting  new  poles. 

WATER  SUPPLY. 

The  Company’s  locomotive  water  supply  is  raised  by  gravity 
at  all  points  except  Albany.  Following  is  a  list  of  the  water  sta¬ 
tions: 

Yaquina: 

Size  of  tank,  11  x  18  feet. 

Capacity,  20,000  gallons. 

Length  of  supply  pipe,  1,038  feet. 


44 


Diameter  of  supply  pipe,  two  inches. 

Source  of  supply,  spring. 

Name  of  owner  of  ground  on  which  supply  is  located,  Ore¬ 
gon  Pacific  Railroad. 

Mile-post  12^: 

Size  of  box  tank,  5x5x7  feet. 

Capacity,  1,000  gallons. 

Tank  supply  through  32  feet  of  trough. 

Source  of  supply,  spring,  located  on  ground  owned  by  Austin 
Rosebrook. 

Chitwood: 

Stave  tank,  11  x  18  feet. 

Capacity,  20,000  gallons. 

Length  and  diameter  of  supply  pipe,  190  feet  2-inch  pipe. 
Source  of  supply,  spring,  located  on  land  owned  by  M.  F. 
Whitney. 

Nashville: 

Box  tank,  5  x  5  x  14  feet. 

Capacity,  2,500  gallons. 

Length  and  diameter  of  supply  pipe,  1,016  feet  2-inch  pipe. 
Supply  from  spring  on  ground  owned  by  James  Hamar. 
Pyburn: 

Box  tank,  5  x  5  x  14  feet. 

Capacity,  2,500  gallons. 

Length  and  diameter  of  supply  pipe,  103  feet  2-inch  pipe 
and  325  feet  3-inch  pipe. 

Source  of  supply  from  spring  on  ground  owned  by  Charles 
McCollough. 

Mile-post  64: 

Box  tank,  8  ft.  x  8  ft.  6  in.  x  12  feet. 

Capacity,  6,000  gallons. 

Length  and  diameter  of  supply  pipe,  400  feet  2-inch  pipe. 
Supply  from  spring  on  land  owned  by  William  Wyatt. 


45 


* 


Ale  any: 

Until  within  the  last  two  months  the  water  supply  at  Albany 
was  taken  from  two  box-tanks,  5  x  5  x  12  feet,  which  were  fed 
by  pipe  from  the  City  Water  Works,  otherwise  known  as  the 
Albany  Canal  Water  Lighting  &  Transportation  Company 
(one  of  whose  principal  stockholders  is  William  M.  Hoag), 
at  a  cost  of  $35  per  month. 

As  the  Company  had  in  stock  a  30,000-gallon  stave  tank,  the 
receiver  had  this  tank  set  up  at  the  side  of  the  track  leading  to 
the  round-house,  dug  a  twenty-foot  well,  eleven  feet  in  diameter, 
at  the  round-house,  securing  an  abundant  supply  of  good  water. 
The  Company  owned  two  toy  engines,  the  Corvallis,  and 
No.  5,  too  small  to  be  of  any  use  whatever.  The  Corvallis 
was  accordingly  blocked  up  in  the  round-house  in  the  stall 
nearest  the  well,  and  used  to  furnish  steam  to  a  small  pump 
by  which  water  from  the  well  is  delivered  to  the  tank  through 
about  400  feet  of  two-inch  pipe.  The  round-house  foreman  runs 
the  pump  two  or  three  times  a  week  personally,  and  gives  us  an 
abundant  supply  of  water,  thus  doing  away  with  the  $35  a  month 
rent  paid  to  the  City  Water  Company. 

Lyons: 

Stave  tank,  1 1  x  18. 

Capacity,  20,000  gallons. 

Length  and  diameter  of  supply  pipe,  1,470  feet,  2-inch  pipe. 
Source  of  supply,  spring  on  land  owned  by  Miles  Rainwater. 

Toward  the  eastern  end  of  the  road,  springs  are  so  abundant 
close  to  the  track,  that  no  further  water  stations  have  been  pro¬ 
vided.  Whenever  it  has  been  necessary  to  take  water  on  the 
east  end  of  the  track,  a  spring  has  been  found  at  a  sufficient  ele¬ 
vation  to  enable  it  to  be  turned  into  the  tank  through  a  few  feet 
of  board  trough.  Such  sources  of  supply  are  found  at  mile-posts 
129^  and  138J,  situated  on  Government  land.  The  entire  water 
supply  is  of  phenomenal  purity,  being  almost  entirely  free  from 
mineral  of  any  kind,  or  scale-producing  substance. 


46 


The  supply  at  Nashville  usually  fails  toward  the  end  of  the 
season,  but  it  is  possible  to  substitute  for  this  a  tank  at  the  near¬ 
est  crossing  of  the  Yaquina  River,  which  could  be  supplied  by  a 
ram  in  the  river. 

The  writer  has  been  unable  to  find  any  agreements  with  the 
parties  owning  the  above  sources  of  supply;  but,  so  far  as  he  is 
aware,  no  claims  have  ever  been  presented  by  the  parties  for  the 
water  furnished 

The  water  supply  at  Yaquina  has  been  discussed  before, 
under  the  head  of  “Terminal  Facilities.” 

TRACK  SCALES. 

The  Company  has  track  scales  only  at  Yaquina.  Scales  are 
badly  needed  at  Albany,  and  would  quickly  pay  for  themselves. 

FUEL. 

The  only  fuel  used  for  firing  locomotives  is  two-foot  fir  wood, 
which  is  cut  and  put  out  by  farmers  and  ranchers  living  along 
the  line.  The  Company  is  now  paying  for  this  wood  on  the  line 
east  of  Albany  $2.00  per  cord  racked  up  on  the  right  of  way,  or 
$2.25  per  cord  delivered  on  cars.  Between  Albany  and  Yaquina, 
where  the  supply  is  not  so  large,  we  pay  $2.50  per  cord  delivered 
on  the  right  of  way. 

The  following  statement  will  show  the  number  of  miles  run 
by  engines  to  a  cord  of  wood  for  the  past  five  months: 

April - - - 44tVo 

May - 45  AV 

June - 46  yW 

July - 48-tVV 

August  . . 49lVir 

It  will  be  noted  that  there  has  been  a  steady  increase  in  the 
number  of  miles  secured  to  a  cord  of  wood.  This  has  been  due 
to  two  causes:  First,  a  more  rigid  supervision  of  firemen  by 
the  master  mechanic  and  superintendent;  second,  a  considerable 
increase  has  been  secured  by  the  adoption  on  one  of  our  pas¬ 
senger  engines  of  a  single-cone  diamond  stack  in  place  of  the 


47 


usual  funnel  stack  used  on  most  wood-burners.  As  speed  is  not 
a  prime  requisite  with  us,  further  economy  has  been  secured  by 
opening  up  the  nozzles  of  our  engines. 

Reference  has  been  made  elsewhere  to  the  fuel  consumed  on 
the  steamship  Willamette  Valley. 

The  tug  Resolute  is  fired  with  four-foot  fir  wood,  consuming 
on  an  average  a  cord  a  day.  This  four-foot  fir  wood  costs  $2.00 
per  cord  delivered  on  cars. 

The  Company  has  on  hand  at  present  250  cords  of  two-foot 
wood  —  a  very  small  supply. 

EQUIPMENT. 

Motive  Power. — The  Company  owns  sixteen  engines  as 
below: 


No 

Maker. 

Year 

Built. 

Size 

Cylinders. 

Weight  including 
Tank. 

First  Cost 
including 
Freight. 

Condition. 

16 

Danforth  & 
Cook. 

1881 

17  x  24 

62  tons,  1,444  pounds 

$14,000 

Good . 

2 

Rogers, 

_ 

17  x  24 

62  tons,  1,444  pounds 

7,728 

Good. 

3 

t  4 

— 

17  x  24 

62  tons,  1,444  pounds 

7,728 

Needs  light 
repairs. 

4 

4  4 

— 

17  x  24 

63  tons,  1,850  pounds 

7,728 

Needs  general 
overhauling. 

5 

Danforth  & 
Cook, 

1886 

10  x  18 

About  30  tons. . 

7,210 

Fair,  but  too 
small  to  be  of 
use. 

6 

D.  &  C. 

1886 

15  X  22 

56  tons,  Soo  pounds 

7,210 

Needs  general 
overhauling. 

7 

4  4 

1886 

15  X  22 

56  tons,  800  pounds 

7,210 

(  t 

8 

<  ( 

1886 

15  X  22 

56  tons,  800  pounds 

7,210 

‘f 

9 

<  4 

1886 

15  X  22 

56  tons,  800  pounds 

7,210 

t  4 

10 

4  4 

1886 

15  X  22 

56  tons,  800  pounds 

7,210 

4  4 

. 

11 

4  ( 

1886 

15  X  22 

56  tons,  800  pounds 

7,210 

4  4 

Needs  light 
repairs. 

12 

4  4 

1886 

15  X  22 

56  tons,  800  pounds 

7,210 

13 

1886 

15  X  22 

56  tons,  800  pounds 

7,210 

Needs  general 
overhauling. 

14 

4  4 

1886 

15  X  22 

56  tons,  800  pounds 

7,210 

Good. 

15 

4  4 

1886 

15  X  22 

56  tons,  800  pounds 

7,210 

Needs  light 
repairs. 

“Corvallis” 

10  x  18 

About  30  tons _ 

Too  small  to 

be  of  use. 

All  are  fitted  with  air-driver  brakes. 


The  writer  can  offer  no  explanation  of  the  excessive  cost  of 


48 


Engine  No.  16  (formerly  No.  i).  The  figures  are  as  shown  on 
the  master  mechanic’s  books. 

The  total  first  cost  of  the  engines,  exclusive  of  the  Cor¬ 
vallis,  of  which  we  have  no  record,  was  $116,494,  including 
freight. 

The  power  was  in  poor  shape  when  the  present  receiver  took 
charge,  in  spite  of  the  fact  that  there  had  been  charged  to 
“  locomotive  repairs  in  1892,  $3,790.54,  and  in  1891,  $4,538.02. 
Charges  to  “  locomotive  repairs  ”  since  March  6th  to  October 
1st  have  amounted  to  $2,673.68.  No  attempt  has  been  made  to 
put  the  power  in  first-class  condition,  but  simply  to  do  such  work 
as  was  needed  to  keep  the  portion  used  in  good  running  order. 
None  of  the  engines  were  furnished  with  sight-feed  lubricators, 
and  the  mileage  obtained  to  a  pint  of  lubricating  oil  was  so  low 
—  being  only  about  forty  miles  —  that  it  was  considered  economy 
to  equip  a  number  of  engines  with  sight-feed  lubricators.  Two 
have  been  purchased  each  month,  on  ninety  days’  time. 

In  the  month  of  April,  1893,  the  mileage  to  a  pint  of 
lubricating  oil  was  but  39T1o2o  miles;  in  the  month  of  September 
this  average  has  been  raised  to  263  miles  by  the  use  of  these 
lubricators,  and  when  the  engineers  have  been  schooled  in  their 
use  a  further  increased  saving  is  expected.  With  the  present 
traffic,  it  is  expected  that  the  lubricators  will  pay  for  themselves 
in  about  three  months. 

It  will  require  $13,000  to  put  the  present  motive  power  in 
good  shape.  A  detailed  statement  of  the  repairs  required  on 
each  engine  will  be  found  in  the  book  of  Original  Documents 
No.  1. 

With  reference  to  the  hauling  capacity  of  this  power,  it  may 
be  said  that  the  17  x  24  engines  take  ten  loads  up  Nashville 
Hill,  which  is  five  miles  of  2  per  cent  grade.  The  ten  15  x  22 
engines  were  rather  light  when  purchased  in  1886,  and  in 
view  of  the  tendency  to  heavier  cars  and  tonnage  they  have  not 
grown  any  better  suited  to  modern  requirements. 


49 


The  power,  however,  if  rightly  handled,  is  sufficient  to  take 
care  of  a  very  largely  increased  traffic.  The  17  x  24  engines 
will  handle  on  level  track  or  light  grades  any  traffic  that  the 
Company  is  likely  to  get  for  several  years  yet  to  come,  and  in 
case  of  extreme  necessity  trains  could  be  double-headed.  With 
a  large  increase  in  traffic,  great  economy  would  be  realized  by 
the  use  of  a  pusher  on  the  limiting  grade. 

Taken  as  a  whole,  while  not  as  heavy  as  it  would  be  economy 
to  purchase  to-day,  it  is  quite  sufficient  to  take  care  of  the  prob¬ 
able  traffic  for  several  years  to  come. 


No. 

Maker. 

Seating 

Capacity. 

First  Cost. 

Condition. 

1  _ _ 

Wasson  . ... 

52 

$5,500 

)  Very  poor,  cheap  coaches  in 

2 _ 

Wasson  .... 

52 

5,500 

>  the  first  place;  brought  out 

3 - 

Wasson _ 

52 

5,500 

)  in  sections  by  water. 

4 - 

Pullman _ 

60 

4,409 

Ail  Recently  had  heavy  re- 

5  - 

Pullman _ 

60 

4,409 

A  1  \  pairs. 

Comb.  6 _ 

Pullman _ 

38 

3,809 

Needs  heavy  repairs. 

Comb.  7 _ 

Pullman _ 

38 

3,809 

Needs  heavy  repairs. 

Bag.  1 - 

-Mail  and 

W asson  .... 

. -  - 

4,000 

Very  poor. 

Exp.  2  _  _ 

Ohio  Falls . . 

3,405 

Good.  Recently  had  heavy 
repairs. 

Bag.  3 - 

Ohio  Falls.. 

2,876 

Needs  heavy  repairs. 

Bag.  4 - 

Ohio  Falls.. 

2,876 

A  1.  Recently  had  heavy  re¬ 
pairs. 

When  the  present  receiver  took  charge  of  the  property,  the 
passenger  equipment  was  found  to  be  in  very  bad  repair.  The 
paint  and  varnish  had  almost  disappeared  from  some  of  the 
coaches,  and  in  places  the  siding  was  greatly  weather-worn. 
Several  of  the  roofs  leaked  so  badly  that  the  head-lining  had 
become  warped,  and  all  of  the  coaches  needed  new  wheels. 

A  careful  investigation  proved  that  coaches  1,  2,  and  3  and 
baggage  car  1  were  beyond  repair.  They  were  of  exceedingly 
cheap  and  light  construction  in  the  first  place,  and  had  been 
brought  to  this  coast  in  sections  by  water.  Coaches  4  and  5, 
combination  cars  6  and  7  were  good  cars,  but  had  been 

shamefully  mistreated.  Mail  and  express  3  and  baggage  cars  3 

4 


50 


and  4  were  of  fair  construction,  and  under  existing  circumstances 
would  pay  for  repairs.  It  was  determined  to  repair  only  the 
equipment  used  in  our  passenger  trains,  as  the  finances  would 
not  permit  any  further  expenditure  in  this  line.  Accordingly 
coaches  4  and  5,  baggage  car  3,  and  combination  6  were  given 
a  complete  overhauling,  being  repainted,  lettered,  and  varnished 
in  the  best  manner  known  to  the  art.  It  was  found  that  long 
neglect  had  allowed  the  weather  to  wear  off  the  paint  entirely  in 
many  places,  and  the  siding  itself  was  so  badly  fuzzed  that  it 
was  found  necessary  to  resurface  the  whole  of  it  before  painting. 
These  cars  were  all  furnished  with  new  600-pound  33-inch  cast 
wheels.  The  expense  of  repairing,  painting,  and  furnishing  new 
wheels  for  these  cars  amounted  to  $2,617.06. 

FREIGHT  EQUIPMENT. 


The  freight  equipment  consists  of  the  following  cars: 


Kind  of  Car. 

Built  by 

Cost. 

Cost  of  repairs  needed. 

Caboose  No.  1. 

O.  P.  R.  Co. 

$1,247  50 

$250 

Stock  Car  No.  501. 

0.  P.  R.  Co. 

627  00 

Condemned. 

200  15-ton  box  cars. 

Pullman  Co. 

41 1  70  each. 

$T2o  each. 

58  14-ton  box  cars. 
80  flat  cars,  intend- 

0.  P.  R.  Co. 

544  34  each. 

ed  for  15-ton. 

O.  P.  R.  Co. 

469  34  each. 

$175  to  $250  each,  not 
including  wheels. 

Of  the  box  cars  enumerated  above,  eighteen  are  without 
trucks,  the  trucks  having  been  taken  for  use  in  building  flat  cars. 
These  box  cars  are  in  use  at  various  points  along  the  road  for 
warehouses,  Lool-houses,  etc. 

Stock  Car  No.  501  is  condemned  by  reason  of  the  fact  that 
the  roof  is  rotted;  posts,  side  and  end  sills  are  rotted. 

The  entire  freight  equipment  had  been  allowed  to  run  down 
although  $10,705.92  were  charged  to  repairs  on  freight  cars  in 
1891  and  1892. 

The  200  Pullman  box  cars  are  in  very  poor  condition.  The 


51 


estimated  cost  of  repairs  will  give  a  new  roof,  second  set  of 
brakes,  repaint  and  air,  and  new  wheels  where  needed.  It  is 
considered  economy,  in  view  of  our  grades,  to  furnish  our  freight 
equipment  with  air. 

In  view  of  the  long  rainy  season,  characteristic  of  this 
country,  the  very  bad  condition  of  the  roofs  of  our  box  cars,  and 
the  absolute  necessity  of  repairs  in  this  direction  to  avoid  heavy 
claims  for  damages,  the  receiver  has  arranged  to  reroof  ioo  of 
these  cars  with  Hutchins’  patent  roofing,  at  a  cost  for  material 
laid  down  at  our  shops  at  Yaquina  of  $12.50  per  car.  The 
following  roads:  Michigan  Central,  Wabash,  Eastern  Tennes¬ 
see,  Virginia  &  Georgia,  Chesapeake  &  Ohio,  and  Chicago 
&  North-Western  used  5,000  of  these  roofs  last  year. 

The  fifty-eight  box  cars  built  by  the  Oregon  Pacific  Railroad 
Company  were  out  of  date  when  built.  They  were  marked 
fourteen  tons’  capacity,  but  have  only  ten-ton  trucks;  they  are 
not  in  good  proportion  and  have  no  truss  rods.  They  were 
intended  to  be  twenty-eight  feet  long,  but  are  of  varying  lengths. 
It  is  a  serious  question  what  to  do  with  these  cars,  for  they  are 
not  worth  the  repairs  needed  to  make  them  serviceable. 

The  eighty  flat  cars  built  by  the  Oregon  Pacific  Railroad 
Company  were  marked  fifteen  tons’  capacity,  but  are  on  ten-ton 
trucks.  They  were  intended  to  be  twenty-eight  feet  long,  but 
are  of  varying  lengths,  and  not  of  proper  proportions.  They 
are  all  in  poor  condition,  and  practically  need  rebuilding.  The 
estimated  cost  of  above  to  repair  does  not  include  new  wheels, 
which  are  badly  needed  on  most  of  them. 

Attention  is  called  to  the  fact  that  the  box  cars  built  by  the 
Oregon  Pacific  Railroad  Company  cost  $132.64  each  more  than 
the  box  cars  purchased  from  the  Pullman  Company — freight  to 
the  Coast  being  included  in  the  first  cost  of  the  Pullman  box  cars 
given  above;  also  to  the  fact  that  the  fiat  cars  built  by  the 
Oregon  Pacific  Railroad  Company  cost  $57.64  more  than  the 
Pullman  box  cars. 


52 


The  proper  course  to  pursue  with  these  flat  cars  would  seem 
to  be  to  furnish  them  with  new  wheels  where  needed,  make  light 
repairs,  and  then  wear  out  the  bodies  and  trucks  in  construction 
service. 

The  Company  has  now  in  stock  at  Yaquina  162  axles  in  the 
rough,  which  will  finish  up  with  3}-inch  by  7-inch  journals,  good 
for  25-ton  cars;  61  axles  fitted  for  use  with  journals  3J  inches  by 
7  inches,  and  5  axles  fitted  for  use  with  journals  3^  inches  by 
6  inches,  good  for  20-ton  cars,  and  castings  for  fifteen  flat  cars. 

Of  the  258  box  cars  above  referred  to,  five  are  fitted  for 
caboose  cars,  and  one  is  in  use  as  a  tool  car  with  a  wrecking  out¬ 
fit.  Of  the  eighty  flat  cars,  one  has  been  built  over  into  a  steam 
pile-driver.  The  Company  has  also  one  hand-power  derrick  car, 
with  steel  mast;  this  is  new  and  in  good  condition. 

With  reference  to  the  passenger  equipment,  it  is  ‘'recom¬ 
mended  that  three  new  coaches  be  bought  to  replace  coaches  1, 
2,  and  3,  and  that  these  should  be  fitted  for  eating  and  sleeping 
cars  in  construction  service.  The  three  new  coaches  would  cost 
about  $5,000  apiece. 

To  replace  the  eighty  flat  cars,  which  it  has  been  suggested 
could  be  used  up  in  construction,  I  would  recommend  that,  as  a 
starter,  fifty  new  25-ton  flatcars  be  purchased  in  the  East.  These 
flat  cars  should  cost,  built  to  specification  and  equipped  with  air 
brakes,  about  $350  to  $400  apiece  in  Chicago.  If  put  in  repair 
as  suggested,  and  especially  if  the  ocean  warehouse  which  has 
been  recommended  is  built,  the  200  good  box  cars  which  we  now 
have  will  handle  any  probable  traffic  for  some  time  to  come. 

The  road  has  never  owned  a  steam  shovel,  and  it  would  be  a 
decided  economy  to  purchase  one  as  soon  as  any  construction  or 
ballasting  should  be  entertained.  It  would  cost  about  $4,500. 

When  the  line  shall  be  extended  into  Eastern  Oregon,  it  will 
be  necessary  to  provide,  as  a  starter,  probably  eighty  single  and 
double  deck  stock  cars  to  take  care  of  the  large  cattle  and  sheep 
trade  now  awaiting  the  entrance  of  a  railroad.  These  cars 
would  cost  in  the  neighborhood  of  $500  each. 


53 


FORCE. 

Prior  to  the  6th  of  March,  the  commencement  of  the  present 
receivership,  the  road  was  operated  with  the  following  force: 

New  York: 

A  president,  a  third  vice-president  and  treasurer,  an  account¬ 
ant,  a  stenographer,  and  one  or  more  clerks.  The  Oregon 
books  do  not  show'  salaries  paid  to  these  officials. 

The  annual  expenses  for  rental  of  the  New  York  office 
was  $2,300.  A  lease  of  these  offices  expired  May  1,  1892. 
The  rent  up  to  May  1,  1892,  amounting  in  total  to  $3,275, 
was  paid  to  the  owners  of  the  Liverpool  and  London  and 
Globe  Insurance  Company  by  receiver's  certificates  Nos,  88, 
108,  and  1 28,  issued  by  the  late  receiver. 

Officials  in  Oregon: 

First  vice-president  and  general  manager,  salary 


per  annum _ $5,' 000 

Second  vice-president,  salary  per  annum _  3,000 

Assistant  to  general  manager,  salary  per  annum  3,600 
Superintendent,  salary  per  annum, _  3,000 


A  combination  of  auditor,  general  freight  and 
passenger  agent,  and  purchasing  agent,  sal¬ 
ary  per  annum . . . .  3,000 

Roadmaster . •_ .  1,500 

Superintendent  of  bridges  and  buildings,  salary 

per  annum . .  L500 

Master  mechanic,  salary  per  annum. . .  2,400 

An  attorney,  salary  per  annum . . . .  1,200 

Trainmaster,  salary  per  annum _ _ _  1,500 

Assistant  treasurer,  salary  per  annum . .  600 

Traveling  freight  agent,  salary  per  annum _  1,500 

The  present  receivership  has  not  found  it  necessary  to  main¬ 
tain  a  New  York  office,  and  the  services  of  a  general  manager, 
a  second  vice-president,  an  assistant  treasurer,  an  assistant  to 


54 


the  general  manager,  and  a  salaried  attorney  were  found  needless 
in  Oregon.  Under  present  circumstances  it  also  seemed  need¬ 
less  tq  maintain  a  separate  head  to  the  Bridge  and  Building 
Department,  and  the  superintendent  of  bridges  and  buildings 
was  accordingly  dispensed  with,  and  the  department  placed 
under  the  supervision  of  the  roadmaster,  a  moderate  addition 
being  made  to  his  salary.  The  auditor  at  $3,000  per  annum  was 
replaced  by  one  at  $1,500;  and  the  duties  of  the  general  freight 
and  passenger  agent  and  purchasing  agent,  which  the  auditor 
had  formerly  performed,  were  transferred  to  the  superintendent, 
it  being  believed  that  better  results  would  be  achieved  in  this 
line  by  reason  of  the  fact  that  the  superintendent’s  duties  kept 
him  out  in  the  road’s  territory  a  large  portion  of  his  time.  To 
insure  good  service  with  the  added  work,  a  moderate  addition 
was  made  to  the  salary  of  the  superintendent. 

The  former  master  mechanic,  at  $2,400  per  annum,  proved  to 
be  a  very  expensive  man,  and  was  promptly  replaced  with  a  Suc¬ 
cessor  at  $1,800  per  annum. 

The  force  in  the  auditor’s  office,  which  had  formerly  con¬ 
sisted  of  five  clerks  and  a  stenographer,  was  reduced  to  two 
clerks,  at  an  annual  saving  of  $3,540. 

The  superintendent  had  been  formerly  allowed  a  clerk  at 
$1,200  per  annum  ;  and  a  combined  car  accountant  and  operator 
at  the  general  office  had  been  maintained  at  $960  a  year.  The 
duties  of  superintendent’s  clerk,  car  accountant,  and  operator 
were  added  to  those  of  the  train  dispatcher,  who  was  accorded  a 
moderate  increase  in  salary,  and  a  net  saving  was  thereby  accom¬ 
plished  of  $360  per  annum. 

It  will  be  remembered  that  under  the  verbal  contract  with 
the  Oregon  Development  Company,  all  of  the  expenses,  both  of 
the  ship  and  of  the  offices,  at  San  Francisco  and  in  Oregon 
were  in  reality  paid  by  the  Railroad  Company.  At  San  Fran¬ 
cisco  an  office  at  34  Montgomery  Street  was  occupied  by  the 


Development  Company  at  an  annual  rental  of  $3,300,  and  the 


following  force  maintained  :  * 

An  agent,  at  an  annual  salary  of _ $2,400 

A  purchasing  agent,  at  annual  salary  of _ 1 _  1,800 

A  cashier,  at  annual  salary  of _ _ _ _  800 

Stenographer,  at  annual  salary  of _  800 

Freight  solicitor,  at  annual  salary  of . .  1,320 

Watchman,  at  annual  salary  of _ _  720 

Clerk,  at  annual  salary  of _ _ _  720 


Making  a  total  aggregate  expense,  including  rent,  of  $11,460  per 
annum.  In  addition  to  this  the  Development  Company  paid 
$1,200  per  annum  for  a  dock.  The  dock  in  reality  was  the  prin¬ 
cipal  place  of  doing  business,  and  contained  good  and  ample 
office  room  ;  the  uptown  office  was  accordingly  discontinued. 
'The  agent  at  $2,400  was  replaced  by  one  at  $1,500  ;  the  purchas¬ 
ing  agent,  cashier,  and  stenographer  were  dispensed  with,  being 
replaced  by  an  additional  freight  solicitor,  whom  it  was  deemed 
good  policy  to  hire,  to  counteract  any  possible  loss  of  business 
by  the  change  of  location  of  offices.  The  total  annual  saving  by 
this  move  amounted  to  $4,500. 

The  Development  Company  had  also  maintained  a  separate 
agent  at  Yaquina  at  a  salary  of  $1,200  per  annum.  This  was 
deemed  purely  ornamental,  and  he  was  dispensed  with,  his  duties 
being  added  to  those  of  the  Company’s  rail  agent  at  that  point. 

The  loading  and  unloading  and  the  coaling  of  the  ship  at 
San  Francisco  had  been  done  by  the  Development  Company  by 
contract,  at  the  rate  of  25  cents  per  ton  for  cargo  in  and  out  of 
the  ship  and  35  cents  per  ton  for  coaling  —  this  amounted,  on  a 
full  down  cargo  of  1,000  tons  and  a  return  cargo  of  200  tons, 
to  about  $300  per  trip.  The  contract  was  found  to  be  exor¬ 
bitant,  and  the  loading  and  unloading  were  accordingly  placed 
under  the  charge  of  the  first  officer,  who  hires  his  own  men. 
This  has  resulted  in  a  saving  of  about  40  per  cent  in  cost  of 
loading  and  unloading  at  San  Francisco. 


56 


The  loading  and  unloading  at  Yaquina  had  formerly  been 
handled  by  a  boss  stevedore,  to  whom  the  Company  paid  a  salary 
of  $1,200  per  annum.  The  boss  stevedore  was  discharged,  and 
the  first  officer  of  the  ship  instructed  to  superintend  the  loading 
and  unloading  at  this  point.  This  resulted  not  only  in  the  sav¬ 
ing  of  the  boss  stevedore’s  wages,  but  also  has  reduced  the  cost 
of  loading  and  unloading  per  ton  to  about  one-half  of  what  it 
formerly  was. 

The  average  cost  of  meals  served  on  the  steamship  under  the 
Oregon  Development  Company’s  management  was  about  40 
cents  per  meal.  Meals  of  equal  quality  are  now  served  at  an 
average  cost  of  14  cents  each. 

Reference  has  already  been  made  to  the  large  saving  result¬ 
ing  from  the  substitution  of  wood  for  coal  in  firing  the  ship. 

The  total  annual  saving  effected  by  reductions  of  force  and 
salaries  —  of  officials  and  clerks  at  general  office  only —  amounts  to 
$20,900.  This  does  not  include  the  saving  effected  by  abolishing 
the  New  York  office.  Exact  figures  can  not  be  given  for  this, 
but  it  is  believed  that  the  total  expense  of  the  New  York  office 
amounted  to  about  $26,000  per  annum  for  the  items  of  rent  and 
salaries  alone. 

THE  RESOLUTE. 

As  the  tug  is  now  operated  as  an  extension  of  the  rail  line 
between  Yaquina  and  Newport,  on  Yaquina  Bay,  a  distance  of 
three  miles,  it  is  here  included  as  part  of  the  equipment  of  the 
rail  line. 

The  Resolute  was  built  at  Mill  4,  on  Yaquina  Bay,  in  1887, 
particularly  for  use  as  a  bar  tug,  and  is  a  first-class  boat  for 
that  purpose.  Her  official  number  on  the  register  is  110,747; 
her  greatest  length  is  104  feet;  greatest  breadth,  23^  feet;  depth 
of  hold,  10  feet;  gross  tonnage,  9ijDV  to115;  draught,  9  feet  3 
inches  aft,  7  feet  9  inches  forward;  capacity  of  bunkers,  six  cords 
of  wood,  forward  hold  not  included.  Engines  built  by  Neafie  <S: 


Levy  of  Philadelphia,  Pa.,  No.  790;  steel,  fore  and  aft  com¬ 
pound;  diameter  of  cylinders,  20  and  34  inches;  stroke,  36 
inches;  propeller,  9  feet  in  diameter;  pitch,  12  feet;  made  of 
manganese  bronze;  main  boiler  of  steel,  built  by  Neafie  &  Levy 
of  Philadelphia;  type,  Scotch  Marine;  tensile  strength,  60,000 
pounds;  length,  11  feet;  diameter,  13S  inches;  pressure  allowed, 
100  pounds;  158  tubes,  3^  inches  in  diameter;  2  furnaces,  8  feet 
long. 

The  Resolute  has  also  a  donkey  boiler,  operated  with  a 
pressure  of  fifty  pounds. 

The  general  condition  of  the  hull  is  good;  deck  needs  calk¬ 
ing;  shoe  gone;  the  hull  is  coppered  up  to  the  water-line;  keel 
is  badly  slivered  and  worm-eaten  —  probably  have  to  be  renewed. 
Repairs  to  the  hull,  dockage  included,  will  cost  about  $1,500. 
Condition  of  the  boilers  is  bad;  they  have  been  patched  several 
times.  Repairs  necessary  will  probably  cost  between  $3,500  and 
$4,000.  The  engine  needs  repairs  to  the  extent  of  about  $250. 

The  hull  of  the  Resolute  cost  $18,490.06,  the  engines  and 
boilers  $18,067.71,  making  a  total  first  cost  of  $36,557.77. 

The  construction  of  the  Resolute  was  commenced  by  the 
Oregon  Development  Company,  and  carried  on  by  them  to  the 
extent  of  $11,420.87;  at  this  point  she  was  transferred  to  the 
Oregon  Pacific  Railroad  Company,  the  amount  expended  upon 
her  by  the  Development  Company  being  charged  to  the  railroad 
in  account. 


RIVER  DIVISION. 

The  Company  owns  a  fleet  of  three  river  steamers,  which 
ply  on  the  waters  of  the  Willamette  River  between  Portland,  Ore. 
and  the  head  of  navigation,  which  is  about  Harrisburg, 
twenty  miles  south  of  Corvallis.  Following  is  a  description  of 
the  boats: 


58 


Steamer  Wm.  M.  Hoag: 

Stern-wheel  boat  built  at  Portland,  Ore.,  in  1887;  her  official 
number  is  81,171;  gross  length,  150  feet;  width,  32  feet; 
depth,  5  feet  6  inches;  gross  tonnage,  454^5-  tons;  net  ton- 
*  n age  43iyW  tons;  engines  are  simple,  direct  acting;  cylin¬ 
ders,  16  inches  in  diameter;  5-foot  stroke,  with  single  slide 
valves  and  no  cut-off;  boat  is  fitted  with  a  steam  capstan 
made  by  Providence  Steam  Windlass  Company;  draught 
light,  18  inches. 

N.  S.  Bentley: 

Official  number,  130,364;  built  at  Portland,  Ore.,  in  1886; 
length,  150  feet;  breadth,  32  feet;  gross  tonnage,  431^5-; 
net  tonnage,  40  iy^-;  depth,  4  feet  6  inches.  Machinery  is 
in  all  respects  a  duplicate  of  the  machinery  in  the  Hoag; 
draught  light,  18  inches. 

Three  Sisters: 

Official  number,  145,423;  built  at  Portland,  Ore.,  in  1886; 
length,  1 40-^  feet;  breadth,  30-^  feet;  depth,  4T4^  feet; 
gross  tonnage,  355y-Q2o-;  net  tonnage,  327T3y3¥;  nominal  horse¬ 
power  of  engines  144;  simple,  direct  acting  engines;  cylin¬ 
ders,  14-inch  bore  and  4-foot  stroke.  Boat  is  fitted  .with 
steam  capstan  made  by  Providence  Steam  Windlass  Com¬ 
pany;  draught  light,  13  inches. 

The  Bentley  has  been  twice  wrecked  and  sunk.  Her  hull  is 
in  such  condition  that  it  would  hardly  pay  to  make  any  exten¬ 
sive  repairs  upon  her.  The  river  situation  does  not  warrant  the 
Company  in  operating  more  than  one  or  two  boats,  and  if  it  wTere 
possible  to  do  so,  it  would  be  wise  to  sell  the  Bentley  for  what¬ 
ever  she  would  oring.  Her  hull  needs  calking  badly,  and 
leaks  so  much  that  it  is  necessary  for  the  watchman,  who  has  to 
be  kept  upon  her,  to  spend  most  of  his  time  pumping  in  order  to 
prevent  her  sinking  at  the  dock  where  she  is  laid  up. 

In  order  to  reach  Harrisburg' and  Eugene  on  low  water  this 


summer,  the  upper  works  of  the  Three  Sisters  were  stripped  from 
her,  gaining  about  three  inches  less  draught.  The  carrying 
capacity  of  the  Hoag  and  Bentley  is  about  250  tons  of  sacked 
wheat,  and  of  the  Sisters  about  180  tons.  The  Hoag  and  Bent¬ 
ley  burn  about  one-eighth  of  a  cord  of  wood  to  the  mile  run;  the 
Sisters  about  one-twelfth  of  a  cord  to  the  mile  run. 

The  N.  S.  Bentley  and  the  Three  Sisters  appear  to  have  been 
built  by  the  Oregon  Development  Company  and  operated  by  the 
Company  until  they  were  transferred  in  account  to  the  Oregon 
Pacific  Railroad  Company,  January  18,  1889,  at  a  valuation  of 
$33>265-42. 

The  Wm.  M.  Hoag  was  built  by  the  Oregon  Pacific  Railroad 
Company  at  a  total  first  cost  of  $20,494.49,  her  machinery  and 
boilers  aggregating  about  half  of  this  cost. 

'The  advisability  and  manner  of  operating  the  River  Division 
will  be  discussed  under  the  head  of  “  Traffic.” 

For  the  use  of  the  River  Division  the  Company  owns  at  Cor¬ 
vallis  a  rough  board  warehouse  20  x  80  feet,  with  a  connecting- 
open  shed  15  x  38  feet,  and  an  engine-house  7  x  25  feet.  These 
buildings  are  located  upon  the  banks  of  the  Willamette  River, 
about  thirty  feet  above  low  water.  An  incline  with  two  cars, 
operated  by  a  drum  and  wire  cable,  are  used  to  hoist  freight 
from  the  steamboats  up  to  the  warehouse.  The  drum  is  operated 
by  a  small  engine  in  the  engine-house,  which  takes  steam  from 
the  boat’s  boiler  by  means  of  a  connecting  steam  hose.  The 
engine  will  lift  about  9,000  pounds  to  the  car. 

At  Independence  the  Company  owns  a  piece  of  ground  on  the 
river  front  for  a  landing  four  rods  square.  This  was  purchased 
by  Colonel  Hogg  in  1886  for  $100.  The  Company  had  at  one 
time  a  wharf  upon  this  ground,  but  high  water  took  it  out  in  the 
fall  of  1889,  since  which  time  it  has  never  been  replaced. 

A  landing  is  badly  needed  at  this  point,  which  the  receiver 
has  arranged  to  supply  by  towing  up  there  the  wharf-boat  now 
in  use  at  Salem. 


60 

At  Salem  the  Company  owns  a  piece  of  ground  on  the  water 
front,  230  feet  4  inches  front  by  212  feet  deep,  lying  at  the  foot 
of  State  Street,  and  but  two  blocks  distant  from  the  main  business 
street  of  the  city. 

In  1891  the  Company  built  at  Corvallis  a  wharf-boat,  90  feet 
long  by  32  feet  6  inches  in  width,  and  5  feet  10  inches  in  depth, 
upon  which  was  erected  a  freight  house  19  feet  wide  by  67  feet 
6  inches  long,  and  10  feet  high  at  the  plates,  with  shingle  roof, 
at  a  cost  of  $1,900.  This  wharf-boat  has  two  shore  aprons,  and 
was  towed  to  Salem  and  anchored  on  the  Company’s  frontage, 
where  it  has  since  been  used  as  a  dock.  By  reason  of  the  diffi¬ 
culty  of  managing  the  wharf-boat,  owing  to  the  rapid  rise  in  the 
river,  and  the  extreme  difference  between  high  and  low  water,  it 
is  not  well  suited  for  the  purpose,  and  should  be  replaced  with  a 
permanent  wharf.  The  receiver  has,  however,  leased  from  the 
Salem  Improvement  Company,  who  are  lessees  under  the  Oregon 
Short  Line,  a  wharf  and  warehouse,  owned  by  that  Company  at 
Salem,  for  one  year  at  $50  per  month.  With  a  joint  agreement 
with  the  steamer  Eliwood,  running  between  Salem  and  Portland, 
that  steamer  bears  one-half  of  the  expense  of  the  dock,  and  it  is 
the  intention  to  move  the  wharf-boat  to  Independence. 

This  is  the  extent  of  the  Company’s  holdings  on  the  river. 

The  Company’s  rail  agent  at  Corvallis  acts  as  its  river  agent 
also. 

At  Salem  the  Company  maintains  a  river  agent. 

At  Portland  the  Company  has  a  general  agent,  who,  in 
addition  to  looking  after  its  general  business  to  and  from  that 
point,  especially  with  reference  to  its  through  passenger  travel 
between  Portland  and  San  Francisco,  looks  after  its  river 
business. 

The  agent  at  Salem  has  an  office  in  the  warehouse  on  the 
wharf-boat.  The  general  agent  at  Portland  is  provided  with  an 
office,  No.  84  First  Street,  at  a  rental  of  $30  per  month.  He 


61 


has  sublet  desk  room  in  this  office,  so  that  the  rental  is  reduced, 
to  $20  per  month. 

RIGHT  OF  WAY. 

The  Company  holds  eighty-seven  right  of  way  deeds  between 
Yaquina  and  Corvallis,  and  120  deeds  for  right  of  way  from 
Corvallis  east,  in  addition  to  deeds  for  a  sixty-foot  right  of  way 
through  the  cities  of  Corvallis  and  Albany.  Outside  of  these 
deeds  the  receiver  has  been  unable  to  find  any  map  or  other  con¬ 
secutive  record  of  the  Company’s  right  of  way,  and  until  these 
deeds  shall  have  been  plotted  and  a  proper  right  of  way  map 
prepared,  it  is  impossible  to  speak  with  accuracy  as  to  its  condi¬ 
tion. 

The  receiver  is  having  this  work  done  as  rapidly  as  circum¬ 
stances  will  permit.  A  consecutive  examination  of  the  deeds, 
however,  justifies  the  opinion  that  the  right  of  way  will  be  found 
practically  complete. 

PURCHASING  DEPARTMENT. 

When  the  present  receiver  assumed  charge,  the  accounts  of 
the  Company’s  storehouse  at  Yaquina  showed  that  material  to 
the  amount  of  $40,000  was  being  carried  on  hand.  A  careful 
and  accurate  inventory,  at  current  prices,  revealed  only  about 
$16,000  worth  of  material.  The  discrepancy  seems  to  have  been 
caused  by  loose  methods  of  keeping  accounts,  and  by  exorbi¬ 
tant  valuations  placed  upon  material.  It  was  found  that  the 
Company  was  carrying  in  stock  a  considerable  amount  of  ma¬ 
terial  for  which  it  had  no  use  whatever;  this  was  accordingly 
sold,  and  an  endeavor  has  been  made  to  keep  the  amount 
invested  in  material  as  small  as  possible. 

The  value  of  stock  on  hand  September  30th  was  $14,574.01. 
There  seems  to  have  been  formerly  a  lack  of  systematic  effort  to 
obtain  the  best  market  prices  on  material  purchased;  this  has  been 
entirely  reformed,  and  by  careful  attention  to  the  business  the 
superintendent,  acting  as  purchasing  agent,  has  effected  a  sav- 


mg  of  20  per  cent  on  almost  every  article  purchased  since  March 
6th.  For  example,  the  price  formerly  paid  for  No.  2  varnish 
brushes  was  60  cents,  we  are  now  buying  these  for  50  cents; 
lantern  burners  formerly  cost  11  cents,  now  8-J  cents;  light 
brooms  cost  formerly  33^-  cents,  now  we  buy  the  same  for  30 
cents;  heavy  brooms  formerly  cost  48  cents,  now  354  cents;  rolled 
brass  cost  formerly  28^  cents,  now  24  cents;  brass  castings  cost 
formerly  25  to  30  cents,  now  they  are  purchased  for  20  cents; 
long-spout  oil-cans  cost  formerly  90  cents,  now  75  cents;  16-inch 
flat  files  cost  formerly  58  cents,  now  39  cents;  hickory  pick-handles 
cost  formerly  30  cents,  now  27  cents;  brush  hooks  cost  formerly 
$1,  now  they  are  purchased  for  63  cents. 

Even  in  the  most  staple  articles,  which  are  sold  on  small  mar¬ 
gins,  considerable  saving  has  been  effected.  Five-sixteenths-inch 
common  round  iron  formerly  cost  $3.84  per  100  pounds;  we  now 
buy.  it  for  $3.60.  The  same  proportionate  reduction  has  been 
obtained  in  all  the  other  sizes  of  iron.  Concentrated  lye  for¬ 
merly  cost  15  cents  a  can;  now  we  buy  it  at  8  cents.  Six-penny 
nails  formerly  cost  3 xVo"  ceQts  Per  100  pounds;  now  we  buy  them 
at  2t-|-q  cents.  The  same  proportionate  reduction  on  all  styles 
of  nails.  Signal  oil  cost  formerly  53  and  55  cents  per  gallon, 
now  49I  cents;  head-light  oil  cost  formerly  30  cents  per  gallon, 

now  15  cents;  valve  oil  cost  formerly  75  cents,  now  54  cents; 
manilla  rope  of  all  sizes  15  cents  per  pound,  now  10  to  10F  cents; 
turpentine  cost  formerly  60  cents  per  gallon,  now  46  cents;  i-inch 
globe  valves  cost  formerly  63  cents,  now  45  cents;  2-inch  globe 
valves,  $2.07  former  cost,  now  $1.60;  rubbing  varnish  cost  for¬ 
merly  $4  per  gallon,  now  we  purchase  it  for  $2.50  to  $3.20  per 
gallon. 

An  itemized  comparative  statement  of  the  prices  paid  on  all 
principal  articles  of  material  will  be  found  in  one  of  the  books  of 
original  documents. 

These  reductions  have  been  obtained  in  the  face  of  the  fact 


63 


that  dealers  know  that  the  day  of  payment  is  indefinite.  Con¬ 
siderable  further  reductions  could  be  made  if  the  Company  could 
buy  supplies  for  cash,  or  on  the  usual  thirty  days. 

TAXES. 

By  an  act  of  the  Legislature,  approved  October  24,  1874,  all 
of  the  property  of  the  Willamette  Valley  &  Coast  Railroad  Com¬ 
pany  was  exempted  from  taxation  for  twenty  years,  inconsidera. 
tion  of  the  Railroad  Company  carrying  for  that  period  all  of  the 
troops  and  munitions  of  war  of  the  State  without  other  charge 
than  the  taxes  levied  or  assessed  upon  its  property.  This  act 
has  since  been  declared  unconstitutional. 

The  taxes  now  due  on  the  Company’s  property,  are  as  follows. 

Lincoln _ $4,334  00 

Benton . . 4,410  65 

Linn  _ _ _ _ _  3,2 16  27 

Marion_ . 6,822  67 

$18,783  59 

This  does  not  include  the  levy  for  1893,  not  yet  made. 

INSURANCE. 

When  the  present  receiver  took  charge  of  the  property  no 
insurance  was  in  effect  upon  any  of  its  property  in  Oregon,  the 
policies  having  been  allowed  to  lapse  some  time  previous.  The 
insurance  heretofore  had  been  effected  in  New  York  City. 

No  funds  were  available  for  the  insuring  of  this  property,  and 
in  view  of  the  extra  risks  incurred  upon  some  of  it,  it  was  deemed 
proper  to  carry  a  reasonable  amount  of  insurance.  It  was  only 
after  long  negotiations  and  with  great  difficulty  that  the  insurance 
was  effected. 

The  rules  of  the  Pacific  Insurance  Union,  which  controls  all 
business  on  the  Coast,  forbid  of  the  acceptance  of  anything  except 
cash  for  premiums.  The  receiver  finally  induced  the  companies 
to  accept  receiver’s  certificates  for  premiums,  the  certificates 


64 


being  made  payable  July  10,  1893;  the  idea  being  that  they 
could  be  paid  out  of  the  fund  arising  from  the  expected  sale  on 
July  28th.  These  certificates,  to  the  amount  of  $15,081,  were 
made  a  prior  and  first  lien  upon  all  of  the  Company’s  property. 
Without  this  provision  the  insurance  companies  refused  to  touch 
them.  The  following  insurance  is  now  in  force: 


Steamship  Willamette  Valley . . 

Tug  Resolute . , . . 

Steamer  William  M.  Hoag _ 

Steamer  Three  Sisters _ 

Steamer  N.  S.  Bentley . . . 

Depot  at  Corvallis _ _ _ 

Material  at  Yaquina  Depot  . . . 

Foundry  and  contents  at  Yaquina _ 

Round-house  and  contents  atYaquina__ 
Machine-shops  and  contents  at  Yaquina, 

Hotel  building  at  Yaquina _ 

Roundhouse  and  contents  at  Albany _ 


$75,000  at  9  per  cent. 


25,000 

u 

9 

15,000 

a 

2  — 

<« 

13,000 

u 

2-3- 

z2 

u 

I3,000 

u 

2-3- 

a 

5,000 

a 

2-3- 

z2 

u 

2,000 

a 

3-2  5 

a 

4,000 

u 

5.80 

u 

34,000 

u 

5 

u 

28,000 

u 

0 

00 

10 

u 

5, ooo 

i  fc 

2.80 

u 

5, 200 

i  i 

2.25 

a 

These  policies  expire  April,  1894.  The  Albany  bridge  was 
formerly  insured,  but  as  the  Company  keeps  a  bridge-tender 
thereon  night  and  day,  it  was  not  considered  necessary  to  rein¬ 
sure  this. 

receiver’s  certificates. 


Receiver’s  certificates  have  been  issued  by  the  present  re¬ 
ceiver  to  the  amount  of  $81,389.76. 

$40,000  of  these  certificates  were  issued  to  employes  as  a 
payment  of  46  per  cent  of  the  unpaid  rolls  of  the  previous 
receiver.  These  certificates  bear  date  of  April  10,  1893,  payable 
December  31,  1893. 

$15,081  of  the  preferred  certificates  have  been  issued  for  the 
payment  of  insurance  premiums,  and  were  dated  June  5,  1893, 
payable  July  10,  1893. 


65 


$14,081.31  of  receiver's  certificates  have  been  issued  to 
employes  in  payment  of  August  rolls,  dated  September  1,  1893. 

$12,227.45  of  receiver’s  certificates  have  been  issued  to  em¬ 
ployes  for  the  payment  of  September  rolls,  dated  October  1, 1893. 

The  certificates  issued  in  the  payment  of  August  and  Sep¬ 
tember  rolls  are  made  payable,  in  whole  or  prorata,  by  the  order 
of  the  Court,  out  of  any  moneys  that  the  receiver  may  have  over 
and  above  necessary  expenses  of  his  trust  on  the  first  day  of  each 
month.  These  certificates  were  issued  in  order  to  comply  with 
the  law  passed  by  the  last  Legislature,  making  it  obligatory  on 
receivers  and  assignees  to  issue  such  certificates  of  indebted¬ 
ness  for  all  labor  claims  unpaid  after  thirty  days. 

STEEL  RAILS  IN  SAN  FRANCISCO. 

Up  to  a  short  time  previous  to  the  6th  of  March  the  Com¬ 
pany  had  in  bond  in  San  Francisco  4,043  tons  of  56-pound  steel 
rails.  These  had  been  shipped  to  San  Francisco  by  ships  Troupe, 
Iron  Duke,  Yeoman,  Helenslea,  and  Garfield.  The  storage 
charges  on  these  rails  were  paid  by  the  Oregon  Pacific  Railroad 
Company. 

The  Oregon  Pacific  Railroad  Company  gave  to  the  Bank  of 
California  two  notes,  secured  by  these  steel  rails,  upon  which 
the  bank  advanced  $90,000  to  the  Company.  The  first  note 
was  dated  June  17,  1889,  for  $50,000,  payable  ninety  days  after 
date,  with  interest  at  the  rate  of  7  per  cent,  and  states  that  as 
collateral  security  for  the  payment  of  the  note  the  Company 
has  deposited  with  the  said  bank  3,030  long  tons  of  new  steel 
rails,  made  by  the  Barrow  Hematite  Steel  Company  of  Barrow- 
in-Furness,  England.  Failure  to  pay  the  note  at  maturity  gave 
the  bank  authority  to  sell  all  or  part  of  the  rails.  The  note 
was  signed  by  the  Oregon  Pacific  Railroad  Company,  T.  E.  Hogg, 
president.  The  note  bears  the  following  notation:  $15,000 
paid  on  account  September  1,  1889;  $4,863.50  paid  on  account 
6 


66 


December  6,  1889,  reducing  the  principal  sum  to  $30,136.50, 
and  interest  paid  in  full  to  October  1,  1890. 

The  second  note  was  dated  July  22,  1889,  and  was  for  $40,000, 
payable  in  sixty  days,  with  interest  at  the  rate  of  8  per  cent. 
The  note  states  that  as  collateral  security  for  the  payment  of 
same  the  Company  has  deposited  with  the  said  bank  2,250  tons 
of  the  same  brand  of  steel  —  the  same  stipulations  as  in  the 
previous  note  as  to  the  right  of  the  bank  to  sell  the  rails.  The 
note  was  signed  by  the  Oregon  Pacific  Railroad  Company,  T.  E. 
Hogg,  president;  Norman  S.  Bentley,  treasurer,  and  bears  the 
notation  that  interest  was  paid  in  full  to  October  1,  1890. 

The  rails  were  stored  with  Bode  &  Haslett,  North  Point  U. 
S.  Bonded  Warehouse,  San  Francisco.  A  notice  was  served  upon 
these  parties  under  date  of  October  12,  1889,  signed  by  T. 
Egenton  Hogg,  stating  that  he  had  purchased  from  the  Oregon 
Pacific  Railroad  Company  all  of  the  claim  and  interest  of  that 
Company  in  the  steel  rails  deposited  in  their  warehouse,  subject 
to  the  claim  of  the  Bank  of  California. 

On  November  25,  1890,  Colonel  Hogg,  as  receiver,  wrote  to 
William  M.  Hoag,  authorizing  him  to  offer  the  Bank  of  Cali¬ 
fornia  receiver’s  certificates  for  the  amount  of  the  loan  and 
interest. 

On  December  26,  1890,  Mr.  William  M.  Hoag,’ as  manager, 
wrote  to  Col.  T.  E.  Hogg,  as  receiver,  stating  that  the  Bank  of 
California  had  notified  him  that  if  the  Railroad  Company  did 
not  pay  their  notes  the  bank  would  sell  the  steel  rails  now  in 
their  custody,  they  having  had  an  offer  upon  them  for  $41  per 
ton;  that  he  had  offered  to  pay  the  amount  of  the  Oregon 
Pacific  Railroad  notes  in  receiver’s  certificates,  which  offer  the 
bank  had  refused. 

On  April  17,  1890,  Mr.  William  M.  Hoag  wrote  to  the  Bank 
of  California  that  he  had  just  learned  that  the  steel  rails  in  Bode 
&  Haslett’s  warehouse  were  still  standing  in  their  books  in  the 


67 


name  of  the  Oregon  Pacific  Railroad  Company;  that  he  had  just 
written  to  Bode  &  Haslett  requesting  them  to  transfer  the  rails 
on  their  books  to  Colonel  Hogg’s  name,  ‘‘the  first  object  being 
to  have  the  rails  taken  out  of  the  Railroad  Company’s  name.”  He 
also  asked  the  bank  if  they  would  prefer  to  have  the  rails  trans¬ 
ferred  to  their  name,  “  they  having  already  been  assigned  to 
you  by  Colonel  Hogg  by  way  of  security.” 

On  January  30,  1891,  Mr.  William  M.  Hoag  wrote  to  Messrs. 
Bode  &:  Haslett,  in  reply  to  their  request  for  the  payment  of 
storage  on  steel  rails,  that  he  expected  shortly  to  receive  some 
money,  and  would  then  make  them  a  payment  on  account. 

Copies  of  these  notes  and  correspondence  referred  to  will  be 
found  among  the  original  documents. 

The  only  evidence  which  would  appear  to  substantiate 
Colonel  Hogg’s  claim  to  the  ownership  of  these  rails  is  em¬ 
braced  in  a  journal  entry  of  which  the  following  is  a  copy  : 

“For  payment  by  T.  Egentoti  Hogg,  $10,000,  credited  on 
note  dated  February  12,  1889.  This  amount  was  payment  in  full 
for  the  purchase,  October  12,  1889,  of  4,130  tons  of  steel  rails, 
stored  in  bonded  warehouse  in  San  Francisco.  This  sale  was 
made  subject  to  a  lien  in  favor  of  the  Bank  of  California. ’* 

Sometime  about  October,  1888,  596  tons  523  pounds  of  these 
rails  were  withdrawn  from  bond  and  shipped  to  Oregon.  They 
were  piled  at  the  Front,  but  later  on  were  brought  to  Corvallis  and 
piled  there.  The  writer,  while  acting  as  superintendent,  was  on 
several  occasions  told  by  William  M.  Hoag  that  these  rails  were 
the  property  of  T.  Egenton  Hogg.  On  two  occasions,  by  direct 
permission  of  Mr.  William  M.  Hoag,  Manager,  about  seventy  tons 
of  these  rails  were  used  in  track. 

On  January  20,  1892,  this  596  tons  523  pounds  of  steel  rails 
were  sold  by  the  sheriff  to  the  highest  bidder  as  a  separate  lot 
of  property,  at  the  same  time  when  he  sold  to  Zephin  Job  the 
property  of  the  Oregon  Pacific  Railroad  Company  for  one  mill- 


68 


ion  dollars,  although  the  rails  had  previously  been  advertised 
as  part  of  the  original  property  for  sale.  The  rails  were  bid  in 
by  William  M.  Hoag  at  $30  per  ton,  no  other  bids  being  made. 

In  the  journal  for  April  appears  the  following  entry:  “To 
T.  Egenton  Hogg,  Dr.,  $17,887  to  material  account  rails.  For 
596  tons  523  pounds  steel  rails  sold  to  the  highest  bidder, 
January  20,  1892,  at  $30  per  ton,  and  amount  applied  on  notes, 
for  which  lien  was  given.” 

And  in  journal  for  October,  1890,  there  appears  charged  to 
T.  E.  Hogg,  receiver,  $28,796.28,  being  the  value  of  this  596 
tons  523  pounds  of  rails,  together  with  freight  from  San  Fran¬ 
cisco  to  Yaquina,  cartage,  insurance,  commissions,  duty,  and 
storage  to  October  30,  1888.  On  the  same  date  there  is  charged 
to  general  construction  account,  “material  account  rails,  $38,- 
971.99,”  which  appears  to  have  been  all  of  the  charges  formerly 
paid  for  keeping  these  rails  in  bond.  These  charges  had  been 
paid  by  the  Railroad  Company;  but  as  the  Company  did  not 
actually  have  the  rails  in  possession  it  became  necessary  to  close 
the  account,  and  to  charge  up  these  large  expenses  to  some 
final  account. 

Just  prior  to  the  appointment  of  the  present  receiver  the 
balance  of  the  596  tons  523  pounds  of  steel  rails,  amounting  to 
about  525  tons,  which  had  heretofore  been  piled  at  Corvallis,  was 
hastily  removed  to  San  Francisco  and  stored  with  Haslett  & 
Bailey.  The  rails  were  billed  to  W.  Laird  Law,  San  Francisco 
Supplies  and  bolts  for  about  seven  miles  of  rails,  which  had  been 
piled  with  the  steel  at  Corvallis,  were  not  removed,  the  impression 
having  been  given  out  that  these  fastenings  belonged  to  the  Rail¬ 
road  Company. 

The  receiver  was  in  San  Francisco  on  March  n,  1893,  and 
having  been  duly  advised  by  counsel  that  the  Oregon  Pacific’s 
claim  to  the  ownership  of  these  rails  was  a  good  and  valid  one, 
duly  served  notice  upon  Messrs.  Haslett  &  Bailey,  and  upon  the 


\  I 


69 

Bank  of  California,  also  upon  the  Anglo-Californian  Bank, 
Limited — to  whom  it  is  understood  the  Bank  of  California  had 
transferred  its  claim — that  the  receiver  claimed  full  possession 
of  all  of  the  rails.  Messrs.  Haslett  &  Bailey  were  at  the  same 
time  notified  to  hold  the  rails  subject  to  the  order  of  the  receiver 
of  the  Oregon  Pacific  Railroad  Company.  Later  on  Messrs. 
Haslett  &  Bailey  filed  their  complaint  against  E.  W.  Hadley, 
receiver,  William  M.  Hoag,  and  W.  Laird  Law  to  determine  the 
ownership  of  the  rails.  The  receiver  has  filed  his  answer.  Up 
to  date  Mr.  William  M.  Hoag  has  not  answered.  The  receiver 
has  filed  a  suit  against  the  Anglo-Californian  Bank,  Limited,  to 
determine  the  Company’s  interest  in  the  rails,  and  it  is  understood 
that  Colonel  Hogg  will  intervene. 

LITIGATION. 

In  addition  to  the  two  rail  suits  above  referred  to,  the  follow¬ 
ing  suits  are  pending: 

In  the  case  of  Coe  vs.  Pacific  Construction  Company,  the 
receiver  has  intervened  as  a  creditor  of  the  Construction 
Company. 

A  suit  has  been  filed  entitled  Charles  Altschul  vs.  The  Oregon 
Pacific  Railroad  Company  and  Willamette  Valley  &  Cascade 
Railroad  Company,  E.  W.  Hadley,  receiver,  and  others,  in  the 
matter  of  the  land  grant  to  the  Willamette  Valley  &  Cascade 
Mountains  Military  Wagon  Road  Company.  The  receiver  has 
until  October  30th  to  file  an  answer. 

Papers  have  been  prepared,  but  not  filed,  in  a  proposed  suit  of 
E.  W.  Hadley,  Receiver,  vs.  Geo.  S.  Coe,  Trustee,  to  determine 
the  terms  of  his  trust. 

GENERAL  ASPECT  OF  OREGON. 

The  State  of  Oregon  stands  ninth  in  area  among  the  United 
States  —  having  96,030  square  miles  —  equal  in  area  to  the  States 
of  New  York,  Pennsylvania,  and  Massachusetts. 


70 


The  State  is  naturally  divided  into  four  parts:  “Willamette 
Valley;"  “  Eastern  Oregon,”  being  everything  east  of  the  Cascade 
Range;  the  “  Coast,”  being  everything  lying  between  the  Coast 
Range  and  the  sea;  and  “Southern  Oregon,”  comprising  a 
mountainous  portion  in  the  extreme  southern  part  of  the  State. 

The  Willamette  Valley,  with  a  length  of  about  one  hundred  and 
fifty  miles  and  an  average  width  of  forty  miles,  is  one  of  the 
garden  spots  of  the  world.  The  greater  portion  of  it  is  level, 
finely  watered  by  small  streams  running  into  the  Willamette 
River,  with  a  soil  of  wonderful  fertility  and  richness.  The 
limits  of  its  productions  are  very  wide.  The  finest  wheat  in  the 
world  is  raised  in  this  valley,  and  all  of  the  cereals  reach  their 
greatest  perfection.  Fruits  —  from  those  verging  upon  the 
tropical  to  those  more  characteristic  of  the  Temperate  Zone  — 
are  grown  in  large  quantities  throughout  the  valley.  The  tem¬ 
perature  is  mild  and  equable. 

The  Coast  country  consists  of  a  strip  lying  between  the  Coast 
Range  and  the  ocean,  of  about  twenty  miles  in  width.  It  is 
much  broken  up  by  spurs  running  out  to  the  sea  from  the  mount¬ 
ains,  but  between  these  are  narrow  valleys  of  great  fertility.  It 
is  timbered  to  a  greater  or  less  extent,  but  a  large  portion  of 
the  merchantable  timber  on  the  western  slope  of  the  Coast  Range 
was  destroyed  by  an  immense  fire  which  swept  down  on  this 
side  of  the  mountains,  tradition  says,  about  one  hundred  and 
fifty  years  ago.  On  the  coast  side  of  the  mountains  the  climate 
is  mild  and  moist,  and  the  grass  is  ever  green.  Snow  or  frost  is 
of  very  rare  occurrence,  but  owing  to  the  low  average  tempera¬ 
ture,  cereals  do  not  do  particularly  well  in  this  part  of  the  country. 
Clover  and  the  natural  grasses  flourish  even  better  than  in  the 
Willamette  Valley.  The  country  is  especially  adapted  to  dairy¬ 
ing.  Salmon  in  immense  numbers  enter  all  of  the  rivers  that 
water  this  part  of  the  country,  and  canneries  are  situated  at 
arious  points  along  the  coast. 


71 


Southern  Oregon  has  a  warmer  climate,  and  although  some¬ 
what  mountainous  and  broken,  raises  a  large  amount  of  wheat. 
Many  varieties  of  fruit  are  produced  with  great  perfection  in  this 
section.  Mining  of  both  gold,  silver,  and  nickel  is  carried  on 
extensively. 

Eastern  Oregon,  equal  in  area  to  the  State  of  New  York,  is 
very  different  in  every  particular  from  the  balance  of  the  State. 
The  northern  part  is  very  mountainous  and  broken,  being  cov¬ 
ered  by  the  Blue  Mountains.  Many  rich  mines  have  been 
worked  in  this  section  for  years.  The  balance  of  Eastern  Oregon 
consists,  in  a  general  way,  of  a  vast  elevated  plateau,  shut  in  on 
the  north  by  the  Blue  Mountains,  divided  from  the  Willamette 
Valley  by  the  Cascades,  and  shut  off  from  Idaho  by  the  Stein 
Mountains.  Some  portions  of  this  vast  territory  of  Eastern  Ore¬ 
gon  are  more  adapted  to  the  production  of  cereals  than  others, 
other  portions  again  being  covered  with  nutritious  bunch-grass, 
affording  natural  feeding  ground  for  immense  herds  of  cattle  and 
sheep. 

RAILROADS. 

The  State  of  Oregon,  though  as  large  as  the  States  of  New 
York,  Pennsylvania,  and  Massachusetts  combined,  has  but  1,483 
miles  of  railway  within  its  boundaries.  Of  this  mileage  the 
Union  Pacific  operates  547  miles;  the  Southern  Pacific  653,  of 
which  28  miles  is  narrow  gauge  ;  the  Northern  Pacific  38  miles  ; 
the  Oregon  Pacific  142  miles  ;  and  the  balance  is  made  up  by 
six  small  roads,  operating  from  2 \  miles  to  24. 

The  Union  Pacific’s  line  follows  the  Columbia  River  from 
Portland  to  near  the  eastern  boundary  of  the  State,  and  its  prin¬ 
cipal  Oregon  business,  outside  of  Portland  proper,  is  drawn  from 
Eastern  Oregon,  produce  from  that  part  of  the  country  being 
teamed  to  stations  on  the  Union  Pacific  —  much  of  it  from  100 
to  200  miles. 

% 

The  Southern  Pacific  has  a  line  from  Portland,  on  the  west 


72 


side  of  the  Willamette  River,  running  up  the  Willamette  Valley 
to  Corvallis.  On  the  east  side  of  the  river  the  Southern  Pacific’s 
main  line  from  Portland  south  traverses  the  entire  length  of  the 
valley,  crossing  the  line  of  the  Oregon  Pacific  Railroad  at  Albany. 
The  Southern  Pacific  has  also  a  branch  line  from  Woodburn, 
through  the  valley  in  a  south-easterly  direction,  crossing  the  line 
of  the  Oregon  Pacific  Railroad  at  Shelburne,  east  of  Albany. 

The  Portland  &  Willamette  Valley  Railroad,  a  narrow  gauge 
operated  by  the  Southern  Pacific  Company,  runs  from  Portland, 
on  the  west  side  of  the  river,  in  a  southerly  direction  to  Airlie 
near  the  Coast  Range. 

RESOURCES  OF  THE  STATE. 

The  State  of  Oregon  has  a  total  population,  according  to  the 
census  of  1890,  of  313,767.  Its  population  almost  doubled  in  the 
ten  years  from  1880  to  1890.  Sixty-six  thousand  of  this  population 
is  centered  in  Portland;  10,000  in  Salem;  6,000  in  Astoria;  4,000 
in  Eugene;  3,000  each  in  Albany,  The  Dalles,  and  Oregon  City. 

Of  the  60,000,000  acres  within  the  boundary  of  the  State,  less 
than  1,000,000  are  under  cultivation.  In  1891,  in  the  thirty-one 
counties  of  Oregon  there  were  634,894  acres  under  wheat,  which 
produced  a  little  over  15,000,000  bushels,  the  average  yield  being 
twenty-four  bushels  per  acre.  Agriculture  in  Oregon  is  by  no 
means  confined  to  raising  wheat.  Every  cereal,  root,  and  pro¬ 
duct  of  the  temperate  zone,  and  many  verging  upon  the  tropical, 
is  grown  to  great  perfection  in  some  part  of  the  State.  The  ten 
counties  which  constitute  the  Willamette  Valley  produced,  in 
1891,  6,148,767  bushels  of  wheat,  5,248,847  bushels  of  oats, 
234,081  bushels  of  barley,  and  130,892  bushels  of  corn.  Oats 
are  a  very  heavy  crop,  the  average  yield  being  from  forty  to 
seventy-five  bushels  to  the  acre,  and  although  thirty-six  pounds 
is  the  standard  weight  of  a  bushel,  forty  and  forty-five  pounds  is 
not  an  uncommon  weight.  Hops  are  a  most  important  product, 
and  as  the  rich  valley  soils  are  yearly  proving  their  greater  adapt- 


ability  to  this  product,  the  acreage  %  rapidly  increasing.  The 
average  yield  is  from  2,500  to  3,000  pounds  per  acre.  Sheep, 
cattle,  and  horses  are  raised  to  a  large  extent  all  over  the  State, 
but  owing  to  the  drier  climate  and  the  presence  of  immense 
natural-grass  cattle  ranges,  Eastern  Oregon  easily  takes  the 
lead  in  these  productions. 

Owing  to  the  isolated  condition  of  Eastern  Oregon  accurate 
statistics  embracing  the  whole  of  this  section  are  not  readily 
obtainable,  but  the  following  figures  will  give  some  idea  of  this 
branch  of  agriculture.  In  1891  the  assessor’s  returns  show  that 
there  were  in  Lake  County,  Eastern  Oregon,  30,000  horses, 
75,000  cattle,  and  250,000  sheep.  In  that  year  there  was 
exported  by  Eastern  Oregon’s  only  railroad,  “the  freighter’s 
team,”  6,000,000  pounds  of  wool.  A  close  estimate  of  the  wool 
clip  for  1892  in  Crook  County,  made  by  the  county  clerk  of  that 
county,  foots  up  1,100,000  pounds.  He  further  states  that  there 
is  sold  annually  from  that  county  alone  50,000  mutton  sheep, 
3,000  beef  cattle,  and  2,000  horses.  The  assessors’  returns  from 
the  five  counties  of  Lane,  Linn,  Benton,  Marion,  and  Polk  in  the 
Willamette  Valley  for  1891  show  125,645  sheep  in  those  counties. 

Almost  every  mineral  known  to  the  geologist  is  found  within 
the  State,  but  its  mineral  resources  have  only  been  scratched  on 
the  surface.  For  the  past  five  years  the  annual  gold  product  of 
the  State  averaged  $850,000,  of  which  about  $575,000  per  annum 
was  produced  from  Eastern  Oregon.  Only  in  one  or  two  places 
have  the  coal  resources  of  the  State  been  developed,  although 
there  are  good  coal  prospects  all  over  the  State.  The  coals  are 
mainly  lignitic  in  their  character.  While  Oregon  coal  can  not  well 
be  classed  with  Eastern  or  Australian  bituminous  coals,  yet  they 
are  as  good  as  the  average  Pacific  Coast  coal.  Attention  is  just 
now  being  turned  to  the  development  of  the  coal  resources  of 
the  State.  A  systematic  exploration  of  the  coal  prospects  which 
have  been  found  at  Yaquina  Bay  is  now  being  carried  on.  One 


74 


of  the  best  prospects  of  the  State  is  located  on  the  line  of  the 
Oregon  Pacific  Railroad  Company’s  survey  to  Salem. 

Twenty-five  thousand  square  miles  of  the  mountainous  and 
coast  lands  of  Oregon  are  covered  by  a  growth  of  timber,  the 
like  of  which,  in  diversity  and  size,  no  other  similar  space  on  the 
earth’s  surface  can  boast.  So  far  as  the  present  generation  is 
concerned,  the  supply  is  inexhaustible.  The  varieties  of  chief 
economic  value  are  the  Douglass  or  red  fir,  yellow  fir,  black 
spruce,  hemlock,  sugar  pine,  broad-leafed  maple,  dogwood,  and 
cottonwood.  The  wood  of  the  red  and  yellow  fir  possesses  rare 
and  exceptional  qualities;  for  bridge  building  and  for  frame  tim¬ 
ber  it  surpasses  oak,  possessing  the  same  strength,  but  with 
lighter  specific  gravity.  The  perfection  to  which  the  tree  attains, 
even  reaching  200  and  300  feet  in  height,  renders  it  peculiarly 
valuable  for  exceptional  uses.  Masts  and  spars  sent  to  the  Tou¬ 
lon  dock  yards  were  reported  to  be  “  rare  and  exceptional  for 
dimensions  and  superior  qualities,  strength  and  lightness,  absence 
from  knots,  and  possessing  great  torsional  strength.” 

The  timber  in  the  Cascade  Mountains  in  many  places  grows 
so  close  together,  averaging  an  immense  fir  every  twenty  feet, 
that  it  furnishes  the  acme  of  pile  timber.  In  the  spring  of  1890 
the  writer  had  cut  for  the  use  of  the  Oregon  Pacific  Railroad 
forty-five  ninety-foot  fir  piles.  These  piles  were  every  one  felled 
within  one  hundred  feet  of  the  right  of  way,  measured  accurately 
eighteen  inches  at  the  butt,  twelve  inches  at  the  point,  and  were 
as  straight  as  a  lead  pencil.  It  will  be  noted  that  these  tremen¬ 
dous  sticks  only  varied  six  inches  in  diameter  in  ninety  feet. 
The  following  statistics  of  merchantable  timber,  estimated  from 
the  best  authorities  in  townships  directly  tributary  to  the  Oregon 
Pacific  Railroad  line,  excluding  what  might  go  to  market  in  other 
ways,  is  of  great  interest:  Marion  County,  12  townships,  2,500  feet 
to  the  acre,  6,912,000,000  feet;  Linn  County,  12  townships,  25,000 
feet  to  the  acre,  6,912,000.000  feet;  Crook  County,  50  townships,. 


10,000  feet  to  the  acre,  11,520,000,000  feet;  Harney  and  Grant 
counties,  32  townships,  10,000  feet  to  the  acre,  7,373,000,000  feet; 
Malheur  County,  1,350,000,000  feet;  total  34,066,000,000  feet. 
No  mention  whatever  is  made  of  Benton  or  Lane  counties,  which 
would  certainly  furnish  no  inconsiderable  amount.  These  figures 
are  furnished  by  Mr.  H.  A.  Smith  of  Portland,  who  states  that 
he  is  personally  quite  familiar  with  all  of  this  timber,  with  the 
exception  of  that  in  Malheur  County,  and  that  he  has  had  an 
experience  of  over  thirty  years  in-  the  timber  and  lumber  mill 
business. 

To  transport  the  above  timber  to  market,  carrying  10,000 
feet  to  a  car  and  moving  100  cars  per  day  for  313  working  days 
per  year,  would  require  109  years.  Mr.  Smith  adds  that  he  is 
quite  positive  that  this  estimate  is  under  rather  than  over  the 
facts.  This  is  proven  by  the  very  low  estimate  per  acre  at 
which  he  has  made  his  figures,  and  he  is  substantiated  by  a 
carefully  prepared  statement  of  the  standing  timber  of  Oregon 
and  Washington,  by  counties,  recently  published  by  the  Puget 
Sound  Lumberman ,  which,  adding  Benton  County  to  the  above 
list  and  deducting  Grant  County,  figures  up  a  total  of  53.513,- 
000,000  feet. 

COMPETITION  AND  TRAFFIC. 

The  Oregon  Pacific  enterprise,  except  so  far  as  Eastern  Ore¬ 
gon  is  concerned,  was  not  initiated  to  take  possession  of  any 
competitive  territory.  The  intention  evidently  was  to  construct 
a  line  which,  by  means  of  its  natural  advantages  and  strateget- 
ical  position,  should  be  able  to  successfully  divide  the  business  of 
a  large  territory  with  powerful  rivals.  That  it  is  well  destined 
to  accomplish  this  purpose  a  short  inspection  of  the  map  can  not 
fail  to  convince  anyone.  To  make  this  entirely  clear,  however, 
let  me  briefly  sketch  the  traffic  conditions  of  Oregon. 

Until  the  completion  of  the  Oregon  Short  Line,  connecting 
Portland  by  rail  with  the  Eastern  world,  San  Francisco  was  the 


general  distributing  point  for  this  coast,  and  controlled  the  trade 
of  the  Willamette  Valley.  The  completion  of  the  Oregon  Short 
Line  to  its  connection  with  the  Union  Pacific  changed  all  this. 
Portland  was  enabled  to  buy  goods  laid  down  at  her  doors  as 
cheaply,  if  not  cheaper,  than  San  Francisco.  The  completion  of 
the  Southern  Pacific  all-rail  line  from  California  over  the  Siski¬ 
you  Mountains  into  Oregon,  and  its  connection  with  the  Oregon 
&:  California  Railroad  in  this  State,  did  not  prove  of  material 
advantage  to  San  Francisco,  for  the  reason  that  the  rail  line 
■over  the  Siskiyous  and  the  immense  spurs  of  Shasta,  while  a 
wonderful  engineering  feat,  is  perhaps  one  of  the  most  expen¬ 
sive  pieces  of  mountain  railroad  to  maintain  and  operate  in  the 
United  States.  Its  twenty -five  miles  of  31  per  cent  grade  is  to 
a  great  extent  prohibitive  of  freight  traffic.  Rail  rates,  there¬ 
fore,  are  very  high  from  California  to  Oregon  points,  so  that 
San  Francisco  is  placed  at  a  great  disadvantage  in  competing 
with  Portland.  In  addition  to  this  the  Oregon  &  California 
Railroad,  appreciating  the  disadvantages  under  which  its  rail 
line  labored,  has  endeavored  by  means  of  its  rates  to  build  up 
the  trade  of  Portland,  in  Oregon,  as  against  San  Francisco.  It 
is,  however,  upon  the  natural  advantages  of  San  Francisco  as  a 
world’s  market  that  the  strength  of  the  Oregon  Pacific’s  posi¬ 
tion  has  so  far  relied. 

It  should  not  be  forgotten  that  the  Oregon  Pacific’s  line  is 
the  shortest  line  from  San  Francisco  to  all  valley  points.  The 
distance,  for  instance,  from  San  Francisco  to  Albany,  Ore. — 
the  crossing  of  the  Southern  Pacific’s  main  line  and  the  Oregon 
Pacific  Railroad — is  164  miles  shorter  than  over  the  Southern 
Pacific  all-rail  line.  It  is  150  miles  shorter  from  San  Francisco 
to  Salem,  and  seventy  miles  shorter  from  San  Francisco  to 
Eugene,  and  even  fifty  miles  shorter  from  San  Francisco  to 
Portland  itself,  via  Yaquina  Bay,  than  it  is  by  any  other  route. 
In  addition  to  these  short-distance  advantages  the  Oregon 


Pacific’s  scheme  opposes  to  the  Southern  Pacific’s  tortuous  and 
heavily  graded  rail  line  of  772  miles  its  dead-level  sea  route  of 
460  miles,  with  all  of  the  economics  accruing  from  water  trans¬ 
portation  versus  rail.  The  Southern  Pacific  Company,  more  espec¬ 
ially  its  leased  line  in  Oregon,  the  Oregon  &  California,  has  ever 
been  the  most  bitter  opponent  of  the  Oregon  Pacific  Railroad 
Company.  It  has  refused  in  many  ways  to  acknowledge  the 
Oregon  Pacific  as  a  railroad,  insisting  upon  treating  the  Oregon 
Pacific  Railroad,  so  far  as  joint  business  goes,  the  same  as  any 
other  shipper.  In  addition  to  this  it  has  lately  promulgated  a 
tariff  by  which  its  rates  from  points  upon  its  line  to  junction 
points  on  the  Oregon  Pacific  Railroad  are  raised  from  40  to  50 
percent,  while  its  rates  to  Portland  are  lowered.  One  example 
will  indicate  the  principle.  The  rate  on  grain  from  Southern 
Oregon  points  to  Albany  is  $5  per  ton.  The  rate  on  grain  from 
the  same  points  to  Portland — a  haul  of  ninety  miles  farther — is 
$5.  The  imposition  of  this  new  tariff  has  raised  a  howl  from 
one  end  of  the  valley  to  the  other,  and  the  merchants  at  points 
along  the  Southern  Pacific  lines,  who  had  heretofore  benefited  by 
means  of  the  Oregon  Pacific’s  through  rates  on  merchandise 
from  San  Francisco,  being  shut  out  by  the  new  tariff,  have 
resorted  to  extraordinary  means  to  avoid  this  unjust  discrimina¬ 
tion.  For  instance,  the  town  of  Eugene,  on  the  Southern  Pacific 
line  forty  miles  south  of  Albany,  organized  a  wagon-road  freight¬ 
ing  outfit,  and  has  for  months  been  hauling  its  merchandise  from 
Corvallis  to  Eugene,  forty  miles  by  wagon  road,  paralleling  the 
Southern  Pacific  Company’s  line;  the  goods  having  previously 
been  brought  from  San  Francisco  to  Corvallis  by  the  Oregan 
Pacific  Railroad.  To  hold  its  grip  upon  this  business,  the 
receiver  stripped  the  upper  works  from  the  river  steamer  Three 
Sisters,  obtaining  thereby  about  three  inches  lighter  draught, 
good  for  ten  tons  to  the  inch,  and  by  this  means  was  enabled  to 
carry  its  own  traffic  to  many  points  on  the  river  at  dead  low 


water. 


78 


The  entire  stretch  of  the  Willamette  Valley  crossed  by  the 
Oregon  Pacific  Railroad  line  is  strongly  competitive.  There  is 
another  phase  of  the  situation  which  needs  explanation:  First, 
all  of  the  grain  in  this  country  is  handled  in  jute  sacks,  not  in 
bulk;  wheat  being  handled  in  sacks  weighing  on  an  average 
ten  stone,  English,  or  140  pounds.  These  sacks  cost  from  7 
to  8  cents  apiece,  and  are  sold  to  the  farmers  by  the  wheat 
buyers,  and  are  figured  into  the  price  of  wheat  at  all  times.  Here 
the  valley  mills  step  in.  There  are  a  number  of  these  mills,  and 
they  are  a  strong  competitor  with  the  wheat  buyer  for  wheat. 
By  reason,  however,  of  two  facts — first,  the  value  of  the  sacks, 
and  second,  the  profit  on  the  manufactured  flour — the  mills  are 
always  in  a  position  to  take  wheat  as  against  the  wheat  buyer, 
for  they  do  not  sell  the  sacks  to  the  farmer,  but  loan  them  to 
him  over  and  over  again,  and  when  the  sack  is  worn  thin  thevfill 
it  with  chop  and  sell  all  for  a  price  covering  the  original  cost  of 
the  sack.  This  gives  the  mill,  therefore,  an  advantage  of  about 
4  cents  a  bushel,  and  if  this  is  not  enough  they  can  always 
add  a  few  cents,  trusting  to  get  it  back  from  the  profit  on  their 
flour. 

Reference  is  made  in  another  part  of  this  statement  to  the 
fact  that  the  Oregon  Development  Company  owned  the  various 
grain  warehouses  along  the  line  of  the  Oregon  Pacific  Railroad. 
These  consist  of  a  small  elevator  at  Munker’s  Station,  a  similar 
one  at  Philomath,  another  at  Wren’s,  and  a  flat  warehouse  at 
Blodgett,  all  upon  land  owned  by  the  Oregon  Development  Com¬ 
pany.  The  elevators  are  provided  with  elevators  and  cleaners  run 
by  steam  power.  Capacity  of  each  elevator  about  40,000  bushels. 

In  view  of  the  stiff  competition  for  grain,  it  may,  1  think,  be 
taken  for  granted  that  the  ownership  of  grain  warehouses  along 
the  line  by  outside  parties  in  no  way  controlled  by  the  Railroad 
Company  is  bad  in  policy.  The  writer  is  also  of  opinion  that 
the  plan  of  handling  the  grain  crop  along  the  line  of  the  Oregon 


79 


Pacific  Railroad,  by  means  of  elevators  and  cleaners  of  principal 
grain  stations,  is  far  from  being  the  correct  one,  so  far  as  the 
Railroad  Company’s  interests  are  concerned.  First,  it  is  not 
economical,  for  the  reason  that  it  requires  a  complete  and  expen¬ 
sive  plant  at  each  of  such  stations.  Second,  it  results  in  a  loss 
of  freight  on  every  pound  which  the  cleaner  takes  out  of  the 
grain. 

Reference  was  made  elsewhere  to  the  need  of  a  large  storage 
warehouse  at  tide-water,  and  therein  is  believed  to  lie  the  most 
economical  and  remunerative  solution  of  the  problem  of  hand¬ 
ling  grain.  With  this  large  tide-water  warehouse,  the  needs  of 
the  Railroad  Company  at  each  receiving  station  would  be  limited 
to  a  small  flat  house,  with  a  capacity  of,  say,  3.000  bushels,  the 
receipts  at  these  small  houses  being  regularly  shipped  to  the 
tide-water  house  for  cleaning  and  storage,  the  railroad  gaining 
a  haul  on  every  pound  of  the  product.  The  economy  is  gained 
in  interest  on  plant,  maintenance,  repairs,  and  is  plainly  appar¬ 
ent.  It  is  believed  that  the  San  Francisco  Board  of  Trade  would 
make  such  a  warehouse  a  “  call  house,”  so  that  its  receipts  would 
be  negotiable.  This  would  give  the  house  a  standing  that  would 
add  greatly  to  its  power  to  draw  grain  to  it.  In  addition  to  the 
ability  to  negotiate  his  receipts,  the  producer  would  see  an  added 
advantage  in  storing  his  grain  at  tide-water  in  the  fact  that  such 
storage  would  make  the  grain  available  to  any  market,  which  it 
is  not  when  stored  in  a  merely  local  warehouse. 

It  should  be  stated  here  that  the  wheat  raised  in  Oregon  is 
of  two  kinds.  Willamette  Valley  wheat,  while  the  finest  in  the 
world,  is  what  is  known  in  the  trade  as  “soft  wheat.”  The  flour 
made  from  it  bears  the  same  appellation.  The  wheat  grown  in 
Eastern  Oregon  and  California,  being  grown  in  a  drier  and  hot¬ 
ter  climate,  is  “  hard  wheat.”  Both  hard  wheat  and  the  flour 
made  therefrom  command  a  premium  for  export  purposes.  This 
to  a  certain  extent  operates  against  the  taking  of  Valley  wheat 


80 


or  flour  to  San  Francisco  for  export,  although  exporters  have  so 
far  been  able  to  find  a  foreign  market  for  all  Valley  wheat  sent 
to  San  Francisco.  For  all  practical  purposes  Valley  wheat  flour 
is  just  as  good  as  hard  wheat  flour,  and  large  amounts  of  it  have 
sold  in  San  Francisco  for  local  consumption.  With  proper 
encouragement  an  immense  amount  of  this  flour  trade  from  the 
Willamette  Valley  could  be  turned  to  San  Francisco. 

There  is  a  steady  demand  in  San  Francisco  for  oak  and  ash 
lumber  from  Oregon.  Since  the  6th  of  March  the  receiver  has 
worked  up  a  considerable  business  in  four-foot  fir  wood  for  fuel 
in  San  Francisco.  There  is  a  large  market  in  California  for  fir 
piling,  but  just  at  present  the  competition  introduced  by  shipping 
piles  in  great  cigar-shaped  rafts  from  Coos  Bay  does  not  permit 
of  our  entering  the  field  at  remunerative  figures. 

There  are  large  amounts  of  hemlock  timber  along  the  east 
end  of  the  line,  for  which  there  is  a  steady  demand  at  fair  prices, 
by  the  paper  pulp  mills  at  Oregon  City,  who  use  several  million 
feet  per  annum.  Their  contracts  are  made  a  year  ahead,  or  the 
receiver  would  have  secured  this  business  alreadv. 

Good  building  stone  in  Oregon  is  extremely  rare.  The 
receiver  had  the  road  carefully  inspected,  with  the  result  of  dis¬ 
covering  a  first-class  silver-gray  sandstone  quarry  near  Elk  City, 
twenty-one  miles  from  tide-water.  Practical  quarrymen  were 
induced  to  take  hold  of  it;  capital  was  found  for  them;  a  side-track 
1,500  feet  long  was  laid  from  the  Oregon  Pacific  Railroad  to  the 
face  of  the  quarry,  the  grading,  ties,  and  cost  of  labor  being  paid 
by  the  Quarry  Company.  Contracts  were  next  secured  for  the 
stone,  and  the  Corrlpany  is  now  getting  the  first  portion  of  a  lot 
of  100  cars  for  the  new  city  hall  at  Salem.  The  stone  is  of 
excellent  quality,  and  can  be  laid  down  in  San  Francisco  at  about 
60  cents  per  cubic  foot,  as  against  96  cents  for  Santa  Rosa 
stone,  now  principally  used  there.  Active  efforts  are  being 
made,  both  by  the  Stone  Company  and  by  the  receiver,  to  extend 
the  trade  in  this  stone. 


81 


Coal  is  now  being  prospected  extensively  at  Yaquina  Bay, 
with  every  prospect  of  good  veins  being  developed.  The  impor¬ 
tance  of  this  subject  to  the  Railroad  can  not  be  overestimated. 

A  careful  personal  investigation  was  made  by  the  receiver  in 
San  Francisco  to  determine  the  possibilities  of  the  lumber  market 
in  San  Francisco  so  far  as  it  concerned  the  timber  along 
the  Cascade  Division  of  the  Oregon  Pacific  Railroad.  The  prin¬ 
cipal  supply  of  San  Francisco  now  comes  from  Puget  Sound, 
being  controlled  to  a  large  extent  by  one  large  corporation — the 
Pacific  Coast  Pine  Lumber  Company.  The  price  of  dimension 
timber  in  San  Francisco  at  the  present  ranges  from  $12  to  $14 
per  1,000.  It  was  not  deemed  good  policy  by  the  receiver 
to  attempt  to  break  into  the  San  Francisco  lumber  market,  both 
by  reason  of  the  probable  cost  of  obtaining  a  footing  there,  and, 
second,  the  prices  to  be  obtained  for  lumber  were  not  consid¬ 
ered  sufficient  to  justify  the  operation.  The  lumber  now  shipped 
to  San  Francisco  comes  from  streams  emptying  direct  into  tide 
water  on  Puget  Sound,  and  for  the  present  the  writer  does  not 
consider  it  good  policy  to  attempt  to  compete  for  the  San  Fran¬ 
cisco  lumber  trade,  by  reason  of  the  fact  that  the  lumber  over  the 
Oregon  Pacific’s  territory  must  be  hauled  upon  an  average  of 
130  miles  to  tide  water. 

It  is  believed  that  the  best  interests  of  the  Oregon  Pacific 
Railroad  will  be  conserved  by  refraining  for  several  years  from 
pushing  its  timber  into  coast  markets.  The  immense  area  of 
timbered  territory  controlled  by  the  Oregon  Pacific  Company,  the 
writer  believes,  should  be  regarded  as  a  reserve,  to  be  marketed 
on  the  Pacific  Coast  only  when  the  timber  in  Washington,  now 
more  available  to  tide  water,  has  been  cut  off.  The  construction 
of  the  Oregon  Pacific  Railroad  eastward  will  at  once  furnish  a 
large  and  remunerative  market  for  such  lumber  as  the  develop¬ 
ment  of  the  country  may  demand. 

The  receiver  has  made  a  traffic  agreement  with  the  Union 


6 


Pacific  Railway  by  which  that  Company  has  agreed  to  refrain 
from  operating  steamboats  on  the  Willamette  River  south  of 
Salem,  in  consideration  of  the  Oregon  Pacific  Company  agree¬ 
ing  not  to  compete  for  San  Francisco-Portland  business.  Here 
it  is  proper  to  say  that  in  former  years  it  has  been  the  policy  of 
the  Company  to  operate  its  river  business  to  a  great  extent  for 
the  strictly  local  business  on  the  river.  The  present  receiver  has 
not  considered  this  a  proper  policy,  and  is  of  opinion  that  the 
service  on  the  Willamette  River  should  be  regarded  solely  as  a 
feeder  to  the  rail  and  ocean  line.  With  this  in  view  he  has  also 
entered  into  an  agreement  with  the  Elwood,  the  principal  com¬ 
peting  boat  on  the  river,  by  which  the  Oregon  Pacific  is  given 
the  full  control  of  the  river  from  Salem  south,  agreeing  on  its 
part  not  to  run  its  boats  between  Salem  and  Portland,  where 
the  business  is  to  a  great  extent  local  to  the  river.  Business 
taken  by  either  party  for  territory  operated  by  the  other  is  inter¬ 
changed  at  Salem,  where  a  joint  wharf  is  made  use  of. 

Traffic  arrangements  have  also  been  made  with  the  owners  of 
the  Bandorille  and  the  Robarts,  steam  schooners  in  the  coasting 
trade  between  Coos  Bay  and  Astoria,  by  which  these  boats  turn 
over  to  the  Oregon  Pacific  Company  at  Yaquina  business  for 
San  Francisco  which  they  may  pick  up,  in  return  for  business  for 
local  coast  points  which  the  Oregon  Pacific  Railroad  Company 
can  procure  for  them.  Sixty-five  tons  of  canned  salmon  were 
turned  over  to  the  Oregon  Pacific  Railroad  at  Yaquina,  a  few 
days  ago,  by  the  Robarts,  for  shipment  to  San  Francisco. 

Every  effort  has  been  made  to  arrive  at  an  amicable  under¬ 
standing  with  the  Southern  Pacific  Company  in  Oregon,  by 
which  the  Oregon  Pacific  Company  would  receive  and  inter¬ 
change  business  with  the  Southern  Pacific  Company,  but  so  far 
our  efforts  have  been  barren  of  success.  Nor  is  it  hoped  that 
any  measure  of  success  may  be  achieved  in  the  future  until  the 
Oregon  Pacific  shall  be  further  extended,  and  it  shall  be  in  a 
position  to  demand  and  not  supplicate. 


83 


In  the  earlier  part  of  this  statement  reference  was  made  to  a 
former  traffic  agreement  between  the  Railroad  Company  and  the 
Oregon  Development  Company.  When  the  present  receiver  took 
possession  of  the  property,  he  promptly  declined  to  be  bound  by 
the  terms  of  this  agreement  —  the  agreement  is  quoted  and 
explained  so  that  its  former  workings  may  be  understood.  This 
agreement,  in  so  far  as  some  of  its  terms  are  concerned,  was 
verbal,  although  it  was  authorized  and  generally  outlined  in  a 
resolution  by  the  Board  of  Directors  passed  on  August  8,  1884. 
Mr.  C.  C.  Hogue,  who  was  at  that  time  general  freight  and  pas¬ 
senger  agent  of  the  Oregon  Pacific,  states  in  his  testimony  before 
the  referee,  in  answer  to  question  225,  that  the  agreement  was 
verbal,  and  was  originally  made  by  himself  with  Mr.  Toby,  who 
was  general  freight  and  passenger  agent  of  the  Oregon  Develop¬ 
ment  Company  in  1887. 

Quoting  from  the  minute  book,  “  The  president  stated  that 
the  Oregon  Development  Company  had  represented  that  as  their 
business  for  a  considerable  time  was  likely  to  be  wholly  confined 
to  the  service  of  the  Oregon  Pacific  Railroad,  which  would 
require  expensive  offices  and  considerable  expense  for  clerical, 
officials’,  and  agents’  service,  wholly  unnecessary  for  the  other 
purposes  of  the  Oregon  Development  Company,  it  was  only  just 
that  the  Railroad  Company  should  bear  this  expense  when  in 
excess  of  the  receipts  of  transportation.  It  was  accordingly 
resolved  that  this  the  Oregon  Pacific  Railroad  Company  shall 
guarantee  to  the  Oregon  Development  Company,  that  the  busi¬ 
ness  receipts  of  the  said  Company  from  transportation  shall  equal 
not  only  all  the  expenses  of  the  steamship  Yaquina  and  other 
steamship  service,  but  that  the  said  receipts  shall  equal  the  entire 
expenses  of  said  Oregon  Development  Company  for  said  steam¬ 
ship  line,  including  office  and  clerical  expenses  therefor.”  And 
should  there  be  any  deficiency  the  Oregon  Pacific  Railroad  Com¬ 
pany  agreed  to  pay  and  make  good  on  demand  such  deficiency. 


84 


This  contract  had  currency  until  twelve  months  after  notice 
from  the  Railroad  Company  to  the  Development  Company  that 
the  former  desired  to  terminate  such  arrangement  and  guarantee. 

Mr.  C.  C.  Hogue  further  testified  that  the  terms  of  the 
agreement  between  himself  and  Mr.  Toby  were  that  the  Oregon 
Pacific  Company  should  receive  50  per  cent  of  the  freight 
charges  on  freight  from  rail  points  to  San  Francisco,  with  one 
or  two  exceptions.  On  lumber  the  through  rate  was  16  cents 
per  100,  of  which  the  Oregon  Pacific  Railroad  Company  received 
6  cents  and  the  Oregon  Development  Company  10  cents. 

Under  the  workings  of  this  contract,  $74,953.25  were  drawn 
from  the  earnings  account  of  the  Oregon  Pacific  Railway  and 
transferred  to  San  Francisco,  to  account  of  the  Oregon  Develop¬ 
ment  Company,  between  January  6,  1891,  and  February  23,  1893. 
From  October  29,  1890,  to  March  5,  1893,  the  sum  of  $80,475.93 
was  charged  to  the  receiver  of  the  Oregon  Pacific  Railroad  as 
losses  in  operating  Oregon  Development  Company. 

YAQUINA  BAY  AS  A  HARBOR. 

So  much  has  been  said  pro  and  con  of  Yaquina  Bay  that  it 
should  be  added  right  here  that  the  development  of  that  harbor, 
the  same  as  the  development  of  the  whole  Oregon  Pacific 
scheme,  has  been  made  the  subject  of  all  the  malignity  and 
depreciation  that  could  be  heaped  upon  it  by  its  opponents  and 
competitors  in  Oregon.  There  is  also  reason  to  believe  that 
deliberate  and  systematic  efforts  have  been  made  to  poison  the 
sources  of  official  information  with  reference  to  Yaquina  Bay; 
but  the  writer  is  firmly  of  opinion  that  no  intelligent  and 
unprejudiced  mind  can  examine  the  harbor  itself  without  arriv¬ 
ing  at  the  conclusion  that  it  is  an  exceptionally  safe  one,  both 
as  to  its  land-locked  character  and  the  easy  security  of  its 
entrance.  The  writer  will  quote  simply  from  the  best  official 
sources,  the  reports  and  statements  of  the  engineers  who  have 
been  in  charge  of  the  Government  works  at  this  point.  They 


85 


will  be  found  in  the  files  of  original  documents  herewith. 
First,  the  report  of  Thomas  W.  Symons,  captain  corps  of 
engineers,  U.  S.  A.,  on  “Jetty  Harbors  of  the  Pacific  Coast/’ 
read  before  the  American  Society  of  Civil  Engineers  on  March 
15,  1883.  Captain  Symons  is  in  immediate  charge  of  all  harbor 
work  in  Oregon,  has  resided  at  Yaquina  for  months  each  year, 
and  should  be  presumably  the  highest  authority  upon  Yaquina 
Bay. 

A  copy  of  an  article  in  the  Engineering  News  of  July,  1883, 
on  the  construction  of  jetties  at  Yaquina  Bay,  Oregon,  by 
Gwynn  A.  Lyell,  formerly  assistant  engineer  in  charge,  is  filed 
herewith.  Careful  perusal  of  both  these  documents  is  recom¬ 
mended. 

It  is  needless  here  to  go  into  engineering  details;  suffice  it 
to  say  that  the  entrance  to  Yaquina  Bay,  Oregon,  is  in  latitude 
44  degrees  41  minutes  north,  longitude  124  degrees  5  minutes 
west.  A  rocky  height  projects  on  the  north  side,  and  on  the 
south  side  low  sand  dunes  stretch  far  away.  The  entrance  is 
protected  by  a  rocky  reef  about  a  mile  from  shore;  the  reef  is 
about  a  quarter  of  a  mile  long.  The  heaviest  of  the  ocean 
swells  are  broken  by  this  reef  before  they  reach  the  entrance  to 
the  bay.  In  reference  to  this,  Captain  Symons  says:  “  This  reef 
has  a  very  important  bearing  on  the  importance  of  the  entrance, 
coming  as  it  does  as  a  breakwater,  protecting  the  entrance  and 
the  jetties.” 

The  tidal  area  here  on  Yaquina  Bay  is  about  five  square 
miles.  The  average  height  of  the  tides  above  the  plane  of  refer¬ 
ence  is  seven  feet,  with  an  average  range  as  high  as  eleven  feet. 

The  south  channel,  before  the  commencement  of  the  Govern¬ 
ment  work,  showed  a  least  depth  of  seven  feet  at  low  water. 
The  maps  attached  to  the  report  of  Captain  Symons  will  show 
the  condition  of  the  bay  and  bar  both  before  and  after  the 
improvement. 


86 


Referring  to  the  results  obtained  in  obtaining  water  on  the 
bar,  Captain  Symons  says:  “  Now  there  is  and  has  been  for  the 
year  past  a  least  depth  of  fourteen  to  fifteen  feet  on  the  bar. 
This  is  at  times  increased  to  eighteen  feet.  This  depth,  with  an 
ordinary  tide  of  seven  feet,  gives  twenty-one  feet  least  depth  to 
the  entrance.”  Again,  “It  is  hoped  that  the  final  results  of  the 
jetties  will  be  to  increase  still  further  a  permanent  depth  on  the 
bar  to  a  depth  at  the  mean  of  the  low  waters  of  eighteen  feet.-’ 

Mr.  Lyell  says:  “  The  Yaquina  Bay  jetties  in  an  unfinished 
state  have  more  than  fulfilled  the  conditions  required  of  them.” 
Captain  Symons  states  that  the  total  amount  that  has  been  appro¬ 
priated  for  the  work  is  $635,000. 

Colonel  Mendell,  United  States  Coast  Engineer  in  charge  of 
all  harbor  improvements  on  the  Pacific  Coast,  and  an  acknowl¬ 
edged  authority  on  harbors,  recently  visited  and  spent  several 
days  at  Yaquina  Bay.  He  was  so  thoroughly  satisfied  with  the 
value  of  the  harbor  and  the  success  of  the  Government  works 
there  in  improving  its  entrance  that  he  stated  personally  to  the 
writer  that  he  would  favor  an  appropriation  fora  2,000  feet  exten¬ 
sion  to  the  south  jetty,  and  a  considerable  extension  to  the  north 
jetty,  which  would  carry  them  to  deep  water. 

Quoting  from  Major  Lyell:  “In  1885  the  Oregon  Pacific 
Railroad  was  completed  from  Yaquina  to  Corvallis,  and  a  part 
of  the  wheat  crop  of  that  season  from  the  Willamette  Valley  was 
exported  via  Yaquina  Bay  to  San  Francisco.  This  was  regarded 
as  a  great  achievement,  as  it  afforded  the  Willamette  Valley 
producers  a  market  at  San  Francisco  in  competition  with  Port¬ 
land,  reducing  rates,  making  a  saving  in  time  over  existing  routes 
of  two  days,  or  in  distance  of  250  miles.” 

It  is  believed  that  at  the  next  session  of  Congress  the  im¬ 
provement  of  Yaquina  Bay  will  be  recognized,  and  that  a  large 
appropriation  will  be  made  for  the  carrying  on  of  the  important 
works. 


Quoting  from  Captain  Symons:  “The  Pacific  Coast  of  the 
United  States  is  generally  high  and  rocky  with  few  good  harbors.” 
Lying  as  Yaquina  Bay  does  about  midway  north  and  south  of 
the  Oregon  coast,  providing  a  safe  entrance  to  the  land-locked 
harbor;  the  nearest  seaport  to  the  heart  of  the  Willamette  Valley 
and  to  Eastern  Oregon,  backed  up  by  the  statements  quoted 
from  the  United  States  engineers  that  eighteen  or  twenty  feet 
depth  at  mean  low  water  can  be  obtained  on  the  bar,  the  writer 
firmly  believes  that  Yaquina  Bay  is  a  most  valuable  adjunct  to  the 
Oregon  Pacific  Railroad,  and  that  there  is  no  good  reason  why  a 
large  proportion  of  the  cereal  production  of  Oregon  should  not  be 
exported  from  Yaquina  Bay  direct  to  Liverpool.  I  can. not  leave 
this  subject  without  making  some  reference  to  an  official  state¬ 
ment  made  to  the  War  Department  by  Major  Huer  on  the 
improvements  of  Yaquina  Bay.  Major  Huer’s  report  was  based 
on  an  examination  of  a  few  hours  one  afternoon  in  October,  and  is 
so  totally  incorrect,  and  so  entirely  at  variance  with  the  public 
reports  of  Capt.  T.  W.  Symons,  the  engineer  in  charge,  who  has 
spent  years  of  careful  study,  assisted  by  competent  engineers  who 
have  been  continually  on  the  ground,  that  I  do  not  think  it 
worth  while  to  discuss  Major  Huer’s  report  in  detail.  He  was 
fully  and  completely  answered  in  the  Oregonian,  on  February 
i,  1893.  A  copy  of  this  answer  will  be  found  among  the 
original  documents. 

It  may  not  be  amiss  here  to  quote  the  face  that  as  compared 
with  Portland,  for  instance,  Yaquina  Bay  is  not  burdened  by  the 
heavy  charges  for  pilotage  and  towage,  which  amount  in  many 
instances  to  from  $500  to  $600  for  a  ship  from  the  sea  to  Port¬ 
land  and  return,  and  which  amounts  to  50  cents  per  registered 
ton  for  towing  vessels  from  the  Pacific  Ocean  from  Portland  and 
return  to  the  sea.  A  copy  of  the  towage  rates  will  be  found 
among  the  documents  offered  for  inspection  with  this  report. 


EXPRESS  BUSINESS. 


Up  to  March  6,  1893,  the  Company  had  been  carrying  the 
business  of  “  Wells-Fargo’s  Express  Company”  on  a  tonnage 
basis,  which  netted  the  Railroad  Company  only  an  average  of  $80 
per  month.  Investigation  proved  that  the  figure  was  much  too 
low  for  the  service  rendered.  The  Express  Company  readily  met 
the  request  for  a  new  deal,  and  after  some  negotiation  a  contract 
was  made  by  which  the  Express  Company  agreed  to  pay  a  lump 
sum  of  $200  per  month  for  use  of  the  present  trains,  in  addition 
to  half  the  salary  of  a  combined  baggageman  and  express  mes¬ 
senger.  This  new  deal  netted  the  Company  $1,890  per  annum 
more  than  had  formerly  been  realized  from  the  business,  in  addi- 
tion  to  which  the  Express  Company  agreed  to  pay  $20  per  month 
for  use  of  the  tug  Resolute  between  Yaquina  and  Newport.  They 
had  formerly  paid  $10  per  month  to  the  Volanta. 

This  makes  the  entire  amount  now  realized  from  express 
business  aggregate  $3,090  as  against  about  $960  previous  to 
March  6th. 

UNITED  STATES  MAIL. 

The  Company  carries  U.  S.  mail  between  Newport  and 
Yaquina  as  a  sub-contractor,  realizing  $480  per  annum  for  the 
service.  Routes  Nos.  173,006,  Yaquina  to  Albany,  and  173,014, 
Albany  to  Halsted,  pay  $7,880.16  per  annum.  June  12th  last 
the  receiver  succeeded  in  getting  service  on  Route  173,014 
extended  to  Detroit,  10.33  miles.  Payment  on  this,  at  the  rate 
of  $42.75  per  mile,  will  be  made  when  next  regular  weighing- 
takes  place  in  1894. 

YAQUINA  BAY  AS  A  SUMMER  RESORT. 

The  comparative  proximity  to  the  seashore  of  a  large  part  of  the 
population  of  the  Coast  States  has  gradually  strengthened  their 
migratory  instincts,  and  every  summer  now  sees  heavy  travel  to 
seaside  resorts.  With  the  exception  of  Yaquina  Bay,  Oregon 


89 


practically  possesses  no  seaside  resorts  except  Clatsop  and  Long- 
Beach.  These  offer  nothing  but  a  bare  strip  of  sand  beach,  and 
what  popularity  they  have  enjoyed  has  been  gained  by  their  prox¬ 
imity  to  Portland,  together  with  fairly  good  hotel  accommoda¬ 
tions.  Neither  of  them  can  compare  for  a  moment  with  Yaquina 
Bay  in  picturesqueness  of  location  and  scenery,  or  in  variety  of 
attractions.  The  writer  has  taken  occasion  to  question  several 
hundred  people  whom  he  has  in  different  years  met  at  Yaquina, 
and  who  had  been  to  both  other  resorts.  The  general  concensus 
of  opinion  was  unanimously  in  favor  of  Yaquina  —  the  only  com¬ 
plaint  being  that  hotel  accommodations  were  deficient,  and  the 
facilities  for  getting  to'  the  bay  from  points  on  the  Southern 
Pacific  lines  were  inadequate.  So  thoroughly  is  the  fact  of 
Yaquina’s  attractions  as  a  summer  resort  acknowledged,  that,  in 
order  to  participate  in  the  business,  the  Southern  Pacific  Com¬ 
pany  has  made  with  the  Oregon  Pacific  Company  the  only 
joint  rate  that  the  writer  is  aware  of  their  having  made  with  this 
Company.  In  1892  this  resulted  in  our  taking  over  6,000  people 
to  Yaquina  Bay  from  points  off  of  our  line,  besides  several  thou¬ 
sands  from  along  the  line  of  the  Oregon  Pacific  Railroad. 

The  land-locked  bay,  with  its  unexcelled  opportunities  for 
boating,  fishing,  and  bathing  in  perfect  security — its  miles  of 
magnificent  ocean  beach  affording  miles  upon  miles  of  the 
finest  driving  beach  that  the  writer  has  ever  seen — the  opportuni¬ 
ties  for  beautiful  and  interesting  drives  to  near-by  places  of 
interest — Seal  Rocks  ten  miles  to  the  south;  Cape  Foulweather, 
with  the  Government  light-house,  ten  miles  to  the  north;  the  sur¬ 
rounding  country  heavily  timbered,  and  teeming  with  deer  and 
smaller  game;  the  opportunities  for  deep-sea  fishing  on  the 
Company’s  tug;  the  horizon  bounded  by  snow-capped  peaks,  and 
the  nearer  mountains,  grand  and  picturesque  in  the  extreme, 
combine  to  make  up  an  ideal  spot  for  summer  wanderers. 
But  the  summer  visitor  cun  not  live  on  scenery  alone,  and  this  is 


90 


the  obstacle  at  present  to  Yaquina’s  full  development  as  the 
resort  of  the  Northwest.  Hotel  accommodations  are  limited 
to  two  small  ones,  which  in  ordinary  seasons  are  overrun;  would- 
be  visitors  learn  that  all  accommodations  are  full,  and  perforce, 
they  go  elsewhere. 

Again,  a  large  amount  of  the  summer  travel  to  the  Bay  origi¬ 
nates  at  Portland,  Salem,  and  other  points  on  the  Southern  Pacific 
Company’s  lines.  To  properly  accommodate  this,  joint  arrange¬ 
ments  are  needed  with  the  Southern  Pacific  Company  by  which  a 
through  sleeper  could  be  attached  to  their  night  trains  leaving 
Portland  and  run  through  to  Yaquina  Bay.  The  receiver 
endeavored  to  effect  such  an  arrangement  the  past  summer,  and 
failed  only  through  the  scarcity  of  sleepers,  due  to  their  concen¬ 
tration  on  World’s  Fair  lines,  by  reason  of  which  the  Southern 
Pacific  Company  were  unable  to  furnish  the  cars  for  the  joint 
run.  The  opportunity  is  open  at  Yaquina  Bay  to  build  up  the 
one  summer  resort  on  the  Pacific  Northwest  —  and  with  that  a 
heavy  and  remunerative  passenger  traffic  —  a  traffic  which  will 
return  every  summer  in  rapidly  increasing  numbers.  As  soon  as 
the  road  shall  have  been  built  into  Eastern  Oregon,  a  large 
inland  population  will  be  tapped,  which  will  greedily  avail  itself 
of  the  opportunity  to  reach  the  ocean.  The  requisites  for  obtain¬ 
ing  this  business  are: 

First.  A  hotel  at  Newport  having  accommodations  for  not 
less  than  300  guests,  attractively  designed  and  with  well  laid-out 
grounds.  An  expenditure  of  $50,000  should  provide  both 
grounds  and  building  complete. 

Second.  The  purchase  and  operation,  between  Portland  and 
Yaquina  Bay,  of  two  sleeping  cars.  These  need  not  be  expen¬ 
sive —  the  nature  of  the  travel  does  not  demand  luxurious  accom¬ 
modations.  The  hotel  should  preferably  be  owned  and  operated 
by  the  Railroad  Company.  The  writer  estimates  that  with  the 
above  arrangements  at  least  18,000  people  would  visit  the  Bay 


91 


the  first  year.  This  should  give  the  Railroad  Company  gross 
earnings  on  this  business  of  at  least  $45,000.  The  hotel  should 
earn  10  per  cent  net  on  the  investment. 

EASTERN  OREGON  AND  THE  EXTENSION  OF  THE  OREGON  PACIFIC 

RAILROAD. 

There  is  probably  no  equal  extent  of  country  in  the  United 
States  to-day  about  which  the  general  public  knows  so  little  as 
Eastern  Oregon;  nor  do  I  know  of  any  equal  area  which  has 
been  so  thoroughly  maligned  and  misrepresented.  Equal  in  area 
to  the  State  of  New  York,  it  is  to  be  expected  that  it  will  present 
different  and  varied  aspects  in  its  different  sections,  as  to  adapt¬ 
ability  for  the  various  branches  of  agriculture. 

It  is  impossible  to  dismiss  this  great  country  with  the  brief 
statement  that  it  is  “  largely  arid  or  semi-arid,  and  mostly  covered 
with  sage-brush;  part  sandy  desert.”  In  fact  such  statements  as 
this  are  in  themselves  self-contradictory,  for  it  is  now  coming  to 
be  known  that  it  takes  good  land  to  grow  sage-brush;  and  he  is 
a  bold  man,  indeed,  who  will  in  these  days  condemn  any  land  as 
“  sandy  desert.” 

The  counties  of  Wasco,  Gilliam,  Morrow,  Umatilla,  and 
Wallowa  form  the  upper  tier  of  Eastern  Oregon  counties.  In 
so  far  as  these  counties  the  proposed  extension  of  the  Oregon 
Pacific  Railroad  into  Eastern  Oregon  is  not  particularly  con¬ 
cerned,  for  while  such  an  extension  would  undoubtedly  draw  a 
large  amount  of  business  from  some  of  these  counties,  yet  the 
bulk  of  it  would  probably  seek  the  Union  Pacific’s  line,  which  skirts 
their  northern  boundary.  It  is  particularly  with  the  counties  of 
Crook,  Grant,  Baker,  Klamath,  Lake,  Harney,  and  Malheur  that 
we  are  concerned.  The  necessity  of  giving  close  personal  atten¬ 
tion  to  the  details  of  his  trust  has  prevented  the  receiver  from 
making  a  personal  examination  of  this  country;  but  he  has  sys¬ 
tematically  gathered  from  every  available  source  a  mass  of 


92 


written  information  bearing  upon  this  country.  In  getting  this 
together  careful  watchfulness  has  been  exercised  to  avoid  the  col¬ 
lating  of  any  facts  or  information  which  did  not  rest  upon  a 
reliable  foundation.  It  is  believed  that  the  sources  from  which 
this  information  has  been  derived  have  been  such  that  reliance 
can  be  placed  upon  the  facts  adduced.  The  original  statements, 
letters,  etc.,  from  which  this  information  is  taken  will  be  submit¬ 
ted  among  the  original  documents. 

It  should  be  remembered,  in  connection  with  the  facts  which 
will  be  given  below,  that  we  are  treating  of  a  country  isolated 
to  a  very  great  extent  by  immense  mountain  ranges,  undeveloped 
and  unserved  by  any  railroad,  and  which  reaches  the  outside 
world  only  by  hundreds  of  miles  of  staging  or  teaming. 

The  county  clerk  of  Crook  County  states,  under  date  of 
August,  1893,  that  the  number  of  bushels  of  wheat  raised  in 
1892  in  Crook  County  was  100,000;  oats,  130,000;  rye,  20,000; 
barley,  6,000;  and  1,100,000  pounds  of  wool. 

In  a  letter  to  the  writer,  under  date  of  April  29,  1893,  Mr. 
Virgil  G.  Bogue,  late  chief  engineer  of  the  Union  Pacific  Rail¬ 
way,  a  man  of  national  reputation,  says:  “  Several  years  ago  I 
made  a  trip  for  the  Union  Pacific  Company  from  Ontario,  via 
Harney  Lake,  Goose  Lake,  and  Pitt  River,  to  Redding,  Cal.,  pre¬ 
paratory  to  preliminary  surveys  which  followed,  and  which  were 
completed  some  months  afterward.  About  Harney  Lake  is  an 
extensive  basin,  which  is  sub-irrigated,  the  water  standing  at  a 
depth  of  three  to  four  feet  below  the  surface.  I  believe  this 
region  will  be  found  valuable  and  that  most  of  the  land  will  be 
brought  under  cultivation.  In  all  the  countrv  which  would  be 
tributary  to  your  line  between  Vail  and  Boise  great  progress  is 
being  made  in  irrigation  and  in  the  cultivation  of  fruits  and  farm 
products.  It  is  well  supplied  with  water  from  the  Owyhee, 
Weiser,  Payette,  Boise,  and  Snake  rivers.  Population  is  growing 
rapidly  and  will  eventually  become  large.” 


93 


Charles  A.  Clark,  secretary  of  the  Boise  Central  Railway 
Company,  writing  to  Mayor  James  A.  Pinney  of  Boise  City, 
under  date  of  March  30,  1893,  says:  “The  present  annual 
imports  into  Malheur  County  are  600,000  pounds  merchandise, 
and  there  is  exported  therefrom  100,000  pounds  ore,  200,000 
pounds  of  wool,  500,000  pounds  hay  and  grain,  3,000,000  pounds 
live  stock,  and  1.000,000  pounds  lumber.” 

J.  C.  Sumner,  county  clerk  of  Crook  County,  under  date  of 
April  13,  1893,  says:  “  The  annual  shipment  of  freight  north¬ 
ward  from  this  county  toward  The  Dalles  is  2,000,000  of  pounds, 
all  of  which  would  be  shipped  from  the  Deschutes.  The  price 
paid  for  freight  both  ways  between  Prineville  and  The  Dalles  is 
i-J  to  2  cents  per  pound.  There  is  shipped  into  this  county 
annually  not  less  than  4,000,000  pounds  of  freight.  There 
are  sold  annually  from  this  county  about  50,000  mutton  sheep, 
3,000  beef  cattle,  and  200  horses.  If  the  Oregon  Pacific  Railroad 
Company  were  built  to  the  Deschutes,  I  believe  it  would  get  all 
the  freight  from  Lakeview,  Klamath  County,  Bruns,  and  the 
western  part  of  Grant  County,  and,  of  course,  all  from  Crook. 
The  soil  in  the  Deschutes  Valley  is  what  we  call  sage-brush  land, 
and  it  produces  good  and  sure  crops  of  rye  without  irrigation, 
and  with  irrigation,  would  produce  abundant  crops  of  wheat, 
oats,  barley,  etc.  I  think  that  on  every  ten  or  fifteen  miles  of 
the  line  of  the  road  through  the  Deschutes  Valley  there  is  not 
less  than  300  sections  of  land  that  can  and  will  be  irrigated  when 
the  road  is  built  to  the  Deschutes.  There  will  also  be  shipped 
from  the  Deschutes  and  Squaw  Creek  large  quantities  of  pine 
lumber  to  be  used  for  finishing  purposes;  for  there  is  no  such 
lumber  in  the  valley  counties.  In  giving  the  foregoing  estimates, 

I  have  placed  them  below,  rather  than  above,  what  I  believe  to 
be  the  true  figures.  I  delayed  a  reply  in  order  to  get  as  much 
information  from  the  business  and  stock  men  of  the  county  as 
possible,  with  whom  I  have  counseled  and  agreed  in  giving  or 
fixing  amounts.” 


94 


Mr.  E.  H.  Test,  county  clerk  of  Malheur  County,  under  date 
of  September  12,  1893,  says  that  he  has  no  accurate  statistics 
to  furnish,  but  thinks  that  50,000  bushels  of  grain  would  be  a 
fair  estimate  of  last  year’s  crop.  Continuing,  he  says:  “We  have 
no  mills,  neither  do  we,  nor  can  we,  ship  any  wheat;  therefore 
only  enough  is  raised  for  home  consumption.  Five  million 
pounds  is  a  conservative  estimate  of  the  wool  crop  this  year. 
Our  principal  product  is  hay,  which  is  fed  to  the  cattle  in  winter, 
and  our  larger  shipments  are  live  stock.  Of  course,  should  we 
get  a  railroad  through  our  county,  more  grain  would  be  raised, 
and  1  think  as  much  per  acre  can  be  raised  here  as  any  place  on 
earth.” 

Dr.  Dumonth  Lotz,  chemist  to  the  United  States  Experi¬ 
mental  Station,  connected  with  the  State  Agricultural  College,  in 
an  interview  with  the  receiver,  states  as  follows: 

In  July  and  August,  1892,  I  made  a  trip  to  Crater  Lake, 
Klamath  County,  Ore.  This  trip  was  made  in  a  wagon,  and  the 
distance  traveled  approximated  one  thousand  miles.  In  October 
and  November  of  the  same  year  I  made  a  trip  to  Lakeview  by 
the  way  of  Ager,  Cal.  On  this  trip  I  traveled  by  stage  and 
horseback  through  the  county  of  Modoc,  Cal.,  and  the  counties 
of  Klamath,  Lake,  and  Crook  in  Oregon.  I  went  to  Lake- 
view  as  the  representative  of  the  State  Superintendent  of 
Public .  Instruction,  to  make  an  investigation  as  to  the  probable 
future  of  that  portion  of  Oregon. 

Q.  What  is  the  nature  of  the  soil  of  that  country;  is  it  suited 
to  wheat  growing? 

A.  The  origin  of  the  soil  east  of  the  Cascades  is  volcanic. 
It  is  very  rich  in  those  elements  necessary  to  plant  life.  Almost 
all  of  the  tillable  soil  is  well  adapted  to  wheat  growing,  some 
very  fine  wheat  being  grown  in  Lake,  Harney,  and  Klamath 
counties. 

Q.  How  does  the  wheat  grown  there  compare  with  that  of 
the  Willamette  Valley? 


95 


A.  The  wheat  grown  in  the  Willamette  Valley  is  deficient  in 
gluten,  one  of  its  most  valuable  constituents,  while  that  grown  in 
the  counties  mentioned  is  rich  in  this  compound;  but  owing  to 
the  great  difficulty  in  getting  the  wheat  to  a  railroad,  very  little 
of  it  reaches  a  market.  Flour  manufactured  at  Paisley,  Lake 
County,  brings  a  much  higher  price  in  the  San  Francisco  market 
than  Willamette  flour. 

Q.  Is  the  soil  of  Eastern  Oregon  adapted  to  fruit  raising? 

A.  In  Goose  Lake  Valley,  and  also  in  the  valley  of  Sumner 
and  Harney  lakes,  very  fine  fruit  is  grown,  considering  that 
there  is  no  market  for  it.  Apples,  peaches,  grapes,  plums,  and 
pears  do  exceedingly  well. 

Q.  What  is  the  general  lay  of  the  land  around  Lakeview? 

A.  Lakeview  lies  on  the  east  side  of  Goose  Lake  Valley, 
eight  miles  north  of  the  lake.  To  the  west,  north,  and  south 
stretches  a  beautiful  valley,  very  level,  and  covered  with  vast 
fields  of  grass,  native  or  timothy.  Timothy  is  being  grown  quite 
extensively  in  this  valley,  averaging  three  tons  to  an  acre.  The 
valley  is  probably  sixty  miles  in  length,  and  ranges  from  ten  to 
twenty  miles  in  width.  In  traveling  from  Lakeview  to  Paisley 
we  cross  a  low  range  of  hills  about  twelve  miles  north  of  Lake- 
view.  These  hills  are  covered  with  bunch  grass.  From  here  the 
country  generally  becomes  level  until  we  reach  Paisley.  Here 
are  the  Paisley  Roller  Mills,  doing  as  good  work  as  any  in  the 
State,  run  by  w’ater  the  year  round.  Fine  fruit,  vegetables,  and 
hay  are  the  products  of  this  valley.  About  three  miles  from 
Paisley,  Ennis  Brothers  have  opened  two  ledges,  one  of  which 
proves  to  be  very  good  silver  ore,  and  the  other  very  rich  in  lead. 
Sheep  and  horses  in  great  numbers  range  over  this  valley  and 
the  surrounding  hills.  From  Paisley  to  Silver  Lake  is  about 
sixty  miles  of  rolling  prairie,  covered  with  bunch  grass  and  sage¬ 
brush. 

Q.  What  is  the  nature  of  the  country  around  Klamath 
Lake  ? 


96 


A.  The  valley  of  the  Klamath  Lake  contains  about  three- 
fourths  of  a  million  acres  of  tillable  land.  It  lies  on  the  eastern 
slope  of  the  Cascades,  and  is  as  level  as  the  valley  of  the  Goose 
Lake.  The  soil  is  black  loam,  mostly  alluvial,  very  fertile,  and 
one  that  will  “  wear  ”  for  many  years.  Grains  of  all  kinds  do  well, 
except  corn.  The  fruit  is  not  excelled  in  the  State.  The  land 
about  Lower  Klamath  Lake  has  recently  been  settled,  and  much 
attention  is  given  to  the  growing  of  alfalfa,  which  produces 
three  crops  a  year  without  irrigation.  I  do  not  believe  that  I 
have  seen  a  more  ideal  agricultural  and  manufacturing  locality 
than  is  the  valley  of  the  Klamath  lakes. 

Q.  Did  you  see  anything  of  the  belts  of  sugar-pine  timber, 
of  which  we  hear  so  much  talk  just  now  ? 

A.  On  the  Eastern  slopes  of  the  Cascades  I  saw  immense 
forests  of  sugar  and  black  pine.*  These  trees  grow  to  an  enor¬ 
mous  size,  and  produce  the  most  desirable  lumber  for  building 
purposes  than  any  in  the  State.  Large  forests  of  pine,  spruce, 
and  cedar  are  found  in  Lake  and  Harney  counties. 

It  is  needless  to  quote  further  from  this  interesting  state¬ 
ment,  of  which  only  a  part  has  been  given  above.  It  is  com¬ 
mended  as  good  reading  to  those  who  have  any  idea  that  East¬ 
ern  Oregon  is  an  “arid  or  semi-arid  country.” 

Mr.  W.  N.  Sutton,  county  clerk  of  Lake  County,  under  date 
of  August  22,  1893,  writes  as  follows: 

“  Your  favor  of  the  17th  inst.  received,  and  in  reply  send  you 
the  published  statement  and  report  for  the  year  1891,  as  there 

ft 

was  no  report  made  up  for  1892.  This  simply  represents  what 
was  done  in  this  county  without  any  market  other  than  the 
local  demand.  There  is  not  to-day  one-quarter  of  the  land 
under  cultivation.”  Following  brief  statement  gives  an  estimate 
of  the  products  of  Lake  County:  Beef  cattle,  8,420;  horses  and 
mules,  500;  mutton  sheep,  32,000;  pounds  of  wool,  1,140,000; 


*  See  photographs  of  this  timber. 


97 


grain,  207,000  bushels;  hides  and  pelts,  etc.,  to  the  value  of 
$10,000. 

Mr.  Joseph  McKay,  clerk  of  Baker  County,  states  under 
August  22,  1893:  “So  far  I  have  been  unable  to  get  any  statis¬ 
tics.  I  think  we  have  about  350,000  pounds  of  wool.  Last  }^ear 
we  had  close  to  50,000  head  of  sheep,  at  an  average  of  $7  per 
head.  Baker  County’s  principal  resource  is  mines.” 

Mr.  P.  S.  Hanson,  civil  engineer,  in  an  interview  states  as 
follows: 

Q.  What  has  been  your  professional  experience  ? 

A.  Five  years  civil  engineer  on  the  government  railways  in 
Norway  ;  three  years  with  the  Northern  Pacific  Railroad,  and 
five  years  with  the  Oregon  Pacific  Railroad  reconnaissance  and 
location,  and  four  years  with  the  Southern  Pacific  Railroad. 

Q.  What  portion  of  the  Oregon  Pacific  location  were  you 
engaged  on  ? 

A.  On  the  location  from  Corvallis  to  the  Deschutes  River, 
and  also  from  Harney  Valley,  through  the  Malheur  Canon  to 
Boise  City. 

Q.  Do  you  know  anything  of  the  Deschutes  River  ? 

A.  I  have  traversed  the  Deschutes  River  'from  its  head 
water  to  The  Dalles,  where  it  enters  the  Columbia  River. 

Q.  What  is  the  chief  industry  of  that  district  ? 

A.  The  lower  part  of  the  valley  is  the  finest  and  earliest  fruit¬ 
raising  country  in  Oregon,  and  it  is  also  a  beautiful  wheat 
country.  There  is  a  large  amount  of  sheep-raising  on  the  upper 
plateaus  on  either  side  of  the  river;  and  the  lower  stretches  of 
country  are  being  devoted  to  wheat  and  fruit  raising,  more  par¬ 
ticularly  the  former.  In  fact  the  whole  country  from  the  foothills 
of  the  Cascades  to  the  farther  side  of  the  John  Day  Valley 
is  one  continuous  wheat  belt. 

Q.  What  is  the  nature  of  the  Harney  Valley  country  ? 

A.  It  is  settling  very  fast;  and,  in  the  intervals  of  two  and 
7 


98 


three  years  between  my  visits,  I  was  surprised  at  the  rapidity 
with  which  the  people  were  coming  in,  considering  there  were  no 
railroad  facilities.  The  huge  stock  ranges  are  being  laid  off 
into  wheat  and  mixed  farms,  wherever  irrigation  is  practicable. 

Q.  What  is  your  opinion  of  the  country  from  Harney  to  the 
Snake  River  ? 

A.  Through  the  Malheur  Canon,  for  sixty  miles,  the  country 

is  suitable  only  for  stock  ranges  ;  then  opens  up  the  Malheur 

# 

River  Valley,  extending  to  the  Snake  RiVer.  This  country  is  all 
settled  up,  and  by  irrigation  anything  and  everything  can  be 
raised.  There  are  two  or  three  irrigation  ditches  in  progress. 

Q.  Have  you  been  up  the  Crooked  River,  and  how  far? 

A.  I  have  walked  from  the  Deschutes  up  Crooked  River 
Valley,  as  far  as  the  city  of  Prineville.  There  is  an  abundance 
of  water,  and  the  valley  gives  rich  promise  of  fertility.  Climb¬ 
ing  out  of  the  valley,  I  came  on  what  is  called  the  Summit  Prai¬ 
rie,  a  stretch  of  country  about  fifteen  miles  long  and  two  miles 
wide,  the  whole  of  it  constituting  a  settlement  of  very  fertile 
farms.  The  country  abounds  in  similar  stretches. 

Q.  I  gather,  then,  from  what  you  have  said,  that  you  con¬ 
sider  Eastern  Oregon  is  far  from  being  a  barren  and  unprofitable 
country,  and  that  when  opened  up  by  railroads  it  could  support 
a  fair  number  of  people  to  the  square  mile  ? 

A.  I  do.  To-day  what  part  is  not  under  cultivation  is  one 
huge  stock  ranch.  You  see  large  bands  of  horses,  cattle,  and 
sheep  roaming  over  the  whole  length  and  breadth  of  it.  I  con¬ 
sider  that  this  would  give  an  immediate  and  considerable  traffic 
to  any  road  that  enters,  and  it  will  be  gradually  supplemented 
by  a  more  varied  and  rapidly  increasing  traffic  as  these  great 
ranges  are  fenced  off  into  farms.  I  would  add  that  one  of  the 
greatest  hindrances,  hitherto,  to  the  development  of  the  country 

has  been  the  total  lack  of  timber  for  building,  fencing,  and  stock- 

0 

shelters 


99 


Mr.  F.  E.  Habersham,  in  an  interview,  states  : 

Q.  What  is  your  professional  experience  ? 

A.  About  twenty-five  years  general  civil  engineer.  The  last 
fifteen  years  of  this  time  I  have  spent  in  locating  and  construct¬ 
ing  railroads  in  Oregon- 

Q.  I  believe  you  have  done  considerable  reconnaissance  for 
various  railroads  ? 

A.  I  have. 

Q.  Did  you  not  develop  the  Stampede  Pass  of  the  Northern 
Pacific  ? 

A.  Yes. 

After  some  further  conversation,  Mr.  Habersham  was  asked 
to  give  a  brief  idea  of  the  country  about  Lakeview.  He  says 
from  Lakeview  to  Lookout  is  no  miles,  through  an  agricultural 
country  thoroughly  well  settled,  with  a  vast  stretch  of  country 
flanking  the  valley  on  either  side.  Indeed,  the  whole  country 
here  has  been  settled  for  forty  years.  The  soil  is  rich,  the  farm 
buildings  are  substantial,  and  there  is  much  evidence  of  wealth 
and  prosperity. 

Mr.  A.  W.  Gowan,  a  reputable  attorney  at  law  at  Burns,  Ore., 
has  gathered  and  forwarded  to  me  a  large  amount  of  statistical 
information.  These  facts  and  figures  so  gathered  are  supported 
by  letters  from  the  parties  who  actually  shipped  the  goods.  I 
need  only  quote  a  few  figures  from  Mr.  Cowan’s  letter.  In 
1892  he  states  that  500,000  pounds  of  merchandise  was  hauled 
to  Burns,  Ore.,  from  The  Dalles.  The  names  of  two  firms  in 
Burns  are  given,  whose  shipments  of  merchandise  for  the  coming- 
year  will  be  125,000  pounds.  He  adds,  “This  is  not  a  full  show¬ 
ing  of  this  class  of  traffic,  as  all  the  great  cattle  ranchers  and 
corporations  ship  and  buy  direct  from  the  wholesaler.  The 
P. ,  L.  &  S.  S.  Co.  consume  not  less  than  two  train-loads  of 
barbed  wire  annually;  and  Peter  French  uses  not  less  than  one 
train-load  each  year.” 


100 


A  careful  estimate,  Mr.  Gowan  states,  places  the  number  of 
stock  and  beef  cattle  in  the  Harney  Valley  at  75,000  head, 
which  number  he  says  will  be  increased  25  per  cent  the  coming 
year,  losses  for  the  past  four  years  in  this  line  of  property 
having  been  merely  nominal.  Thirty  thousand  head  were  driven 
to  railroad  points  for  shipment  during  the  previous  year,  Peter 
French  shipping  alone  9,850  head,  and  the  P.,  L.  &  S.  S.  Co. 
16,000  head.  These  cattle  were  all  driven  to  Baker  City,  Hun¬ 
tington,  and  Ontario,  on  the  Union  Pacific,  and  to  Winnemucca, 
Nev.  Farther  on  he  states  that  there  are  25,000  head  of  horses 
on  the  range.  The  agricultural  products  are  amply  abundant, 
and  the  range  extensive  enough  to  permit  the  cattle  industry  to 
be  increased  to  200,000  without  crowding  the  natural  cattle 
ranges.  With  regard  to  sheep  he  states:  “  The  lowest  estimated 
number  of  sheep  is  placed  at  750,000,  and  all  come  out  of  winter 
quarters  in  prime  condition.  The  wool  product  is  hauled  out 
to  points  on  the  Union  Pacific  Railroad.”  Fie  also  states:  “The 
cutting  of  our  natural  grasses  for  hay  is  the  main  harvest  for  the 
rancher,  and  hay  is  really  the  staple  crop  of  the  valley,  the 
amount  put  into  stack  last  fall  being  100,000  tons,  which  has  a 
nominal  value  of  $1.50  to  $2.50  per  ton.” 

It  may  be  said  here  that  Eastern  Oregon  hay,  of  which  a  lit¬ 
tle  reaches  Portland,  is  esteemed  by  liverymen,  who  use  it  as  a 
conspicuous  advertisement  for  their  stables.  It  sells  for  $10 
per  ton  in  Portland.  It  is  impossible  to  quote  Mr.  Gowan’slong 
letter  in  extenso . 

Several  other  statements  bearing  upon  the  condition  of  East¬ 
ern  Oregon  will  be  found  in  the  file.  It  seems  sufficient  to  close 
these  brief  tributes  to  the  magnificent  fertility  and  varied  prod¬ 
ucts  of  what  is  truly  a  great  inland  empire  with  a  short  letter 
from  the  Hon.  Binger  Hermann,  who  so  ably  represents  the 
State  of  Oregon  in  Congress.  Under  date  of  April  17,  1893,  he 
says: 


101 


“  Your  esteemed  favor  is  at  hand  —  your  inquiry  as  to  the 
Harney  Valley,  in  Eastern  Oregon.  If  I  had  time  I  should  be 
pleased  to  write  you  an  extended  account  of  my  observations  as 
to  that  section.  The  soil  is  fertile,  and  I  feel  sure  from  produc- 
,  tions  I  have  seen  that  wheat,  rye,  barley,  and  oats  can  be  made 
a  yielding  industry.  The  entire  valley  impresses  the  beholder  as 
one  of  the  most  picturesque  spots  on  the  Pacific  Coast.  The 
area  is  extensive,  not  arid,  and  the  climate  adapted  to  cereal 
growth.” 

Mr.  Hermann  has  personally  visited  all  of  the  country  re¬ 
ferred  to. 

To  those  unacquainted  with  so-called  “  sage-brush  ”  lands,  or 
as  they  are  often  misnamed  “arid”  and  “  semi-arid  ”  lands,  a 
little  explanation  may  not  seem  uncalled  for. 

First.  Sage-brush  lands  are  found  only  in  very  dry  climates, 
where  the  natural  rainfall  is  light.  A  light  rainfall  argues  a  large 
majority  of  unclouded  and  sunny  days,  and  it  takes  no  argument 
to  prove  that  sunshine  is  the  principal  factor  in  plant  growth. 
Again  sage-brush  lands  and  their  connected  light  rainfall  are  in 
every  instance  associated  with  a  country  whose  soil  is  of  volcanic 
origin,  and,  as  State  Chemist  Lotz  has  well  said,  such  soils  are 
rich  in  the  elements  of  plant  life.  You  have  then,  in  case  of  all 
sage-brush  lands,  two  of  the  most  important  factors  of  agriculture 
—  abundant  sunshine  and  a  fertile  soil.  But  to  make  the  ele¬ 
ments  of  the  soil  available  for  assimilation  by  plants,  they  must 
be  presented  in  a  solution  —  hence  we  must  have  water  upon 
such  lands  —  and  this  leads  us  to  the  subject  of  irrigation.  For 
present  purposes  it  is  needless  to  enter  into  any  discussion  of 
irrigation,  any  further  than  is  needed  to  correct  the  popular 
impression  that  irrigated  lands  are  at  a  disadvantage  as  compared 
with  those  upon  which  rainfall  is  sufficient  to  raise  the  crop. 
Exactly  the  opposite  is  the  truth. 

It  has  already  been  pointed  out  that  lands  which  demand  irri¬ 
gation  are,  by  that  very  fact,  blessed  with  at  least  50  per  cent 


102 


more  sunshine  than  lands  which  lie  in  a  more  rainy,  and,  there¬ 
fore,  a  cloudier,  climate.  Now  if  we  can  but  put  water  on  such 
lands  we  have  ideal  conditions  of  agriculture.  This  conclusion 
is  borne  out  by  the  facts.  Where  is  the  land  in  the  choicest  por¬ 
tions  of  the  Central  or  Eastern  States  which  will  produce  from* 
100  to  1 15  bushels  of  wheat,  or  nine  tons  of  hay,  to  the  acre,  as  is 
being  done  on  irrigated,  sage-brush  lands  in  Idaho  and  Eastern 
Oregon  to-day?  And,  in  addition,  it  should  be  remembered  that 
these  irrigated  lands  are  growing  richer,  not  poorer,  for  the  irri¬ 
gating  water  carries  with  it  a  measure  of  sediment  which  more 
than  compensates  the  soil  for  its  immense  output.  Those  who 
have  ridden  over  the  Union  Pacific  Railway  to  Portland  will  viv¬ 
idly  remember  the  hundreds  of  miles  of  monotonous  sage-brush 
lands — apparently  a  dry  and  arid  waste.  To  such  I  would  say 
that  could  water  be  got  upon  these  lands,  as  doubtless  it  will  be 
in  coming  years,  there  is  not  an  acre  but  will  grow  anything 
that  the  States  of  Ohio  or  New  York  will  produce  —  grow  at 
least  40  per  cent  more  of  it  to  the  acre  —  and  grow  it  of  better 
quality.  The  finest  lands  in  California,  which  to-day  bear  mar¬ 
velous  crops  of  the  finest  fruit,  and  sell  for  $1,000  an  acre,  were 
in  the  beginning  “  sage-brush  ”  lands,  the  same  as  these.  Net 
earnings  and  dividends  most  certainly  await  the  road  that  will 
adopt  the  modest  sage-brush  as  its  guerdon. 

To  further  make  clear  the  situation  in  Eastern  Oregon,  and 
to  present,  in  so  far  as  possible,  that  great  country  to  the  view 
of  the  absent  eye,  the  receiver  has  had  prepared  a  large  number 
of  photographic  views,  covering  the  various  sections  of  this  coun¬ 
try,  and  submits  them  herewith.  This  is  an  age  of  pictures — 
they  talk  more  eloquently  than  words — and  I  think  that  it  may 
be  granted  that  the  camera  does  not  misrepresent,  but,  on  the 
other  hand,  is  sure  to  confirm  what  the  writer  most  deeply  feels 
to  be  the  fact,  that  Eastern  Oregon  is  a  rich  and  fertile  country, 
and  that  there  does  not  exist  on  the  American  Continent  to-day 


103 


an  equal  area  of  such  country  so  entirely  neglected  by  railroads. 
The  present  development  of  that  country,  great  though  it  is,  is  but 
meager  compared  to  what  the  least  sanguine  may  expect  will  cer¬ 
tainly  follow  the  entrance  within  it,  not  only  of  a  railroad,  but  of 
the  railroad  which  possesses  the  keys  to  this  wonderful  country, 
both  from  the  west  and  from  the  east,  and  which  will  form  the 
most  direct  and  shortest  possible  line  to  tide-water.  Nor  can  this 
great  expanse  of  country  much  longer  remain  without  railroad 
facilities.  Several  different  railroad  companies  have  prospected 
it  and  run  lines  through  it,  and  would  now  doubtless  be  blowing 
their  whistles  in  Eastern  Oregon  were  it  not  for  the  fact  that 
from  the  east,  west,  and  south  there  are  but  two  practicable  ways 
to  get  into  and  out  of  Eastern  Oregon.  They  consist  of  the 
Minto  Pass,  from  the  Willamette  Valley  into  Eastern  Oregon, 
which  the  Oregon  Pacific  Company  now  holds  by  means  of  ten 
miles  of  grade  and  300  feet  of  steel;  and  the  Malheur  Pass, 
from  Eastern  Oregon  to  the  Snake  River,  which  is  similarly  held 
by  eleven  miles  of  grade  and  300  feet  of  steel  in  crucial  points. 
This  fact  is  so  well  known  that  it  is  here  only  necessary  to  quote 
samples  of  evidence  in  support  of  it.  Mr.  Hanson,  the  engi¬ 
neer,  who  was  quoted  a  short  distance  back  on  this  point,  states: 

Q.  How  does  the  Cascade  Pass  location  of  the  Oregon 
Pacific  compare  with  that  of  other  routes  of  your  acquaintance  ? 

A.  There  is  no  other  of  such  easy  grade  and  light  curvature 
as  that  of  the  Oregon  Pacific.  It  is  remarkable  that  a  line  should 
be  gotten  through  the  Cascade  Mountains  without  any  tunnels 
and  without  curvature  to  exceed  ten  degrees.  The  length  of  2 
per  cent  grade  is  only  thirty  miles  altogether,  ten  miles  of  that 
being  against  the  westward  ocean  traffic.  It  is  also  remarkable 
that  on  the  west  side  of  the  Cascade  Mountains  no  snow-sheds 
will  be  necessary,  and  next  to  none,  if  any,  on  the  east  side.  It 
is  also  largely  in  favor  of  the  Oregon  Pacific  location  that  it  lies 
entirely  on  the  sunny  side  of  the  canon,  so  that  snow  goes  off 


104 


much  earlier  than  on  the  shad)'  southern  and  western  sides. 
The  Northern  Pacific  Pass  labors  under  the  disadvantage  of 
being  on  the  shady  side.  This  means  that  the  track  is  open  to 
inspection  and  repair  some  six  weeks  earlier  than  on  the  shady 
side  of  the  mountain. 

Mr.  W.  Z.  Earle,  a  general  railroad  engineer  of  long  and 
varied  experience  in  the  heaviest  mountain  work,  and  who  is 
thoroughly  familiar  with  the  Cascade  Mountains,  testifies  on  this 
point  as  follows:  “The  Oregon  Pacific  Pass  is,  in  my  judgment, 
the  lowest  and  easiest  pass  in  the  whole  Cascade  Range  of 
mountains,  the  summit  being  only  4,600  feet,  something  unique 
through  so  remarkable  a  barrier.  For  a  mountain  road  the  main 
grade-line  is  remarkably  short  and  light,  not  exceeding  2  per 
cent  maximum.” 

Mr.  Earle  was  for  four  years  the  engineer  in  charge  of  the 
work  at  the  summit  of  the  Cascade  Mountains  for  the  Oregon 
Pacific  Railroad  Company.  His  full  testimony,  with  references 
not  only  to  this  particular  portion,  but  covering  the  entire  road, 
will  be  found  among  the  documents  submitted.  Farther  on  he 
states,  with  reference  to  the  Malheur  Canon,  in  which  lies  the 
pass  of  the  Oregon  Pacific  from  Eastern  Oregon  eastward: 

Q.  You  evidently  consider  this  Malheur  C^fion  the  key  to 
the  situation.  Is  there  another  pass  from  the  Snake  River  to 
the  Harney  Valley  ? 

A.  This  particular  work  was  constructed  by  the  Oregon 
Pacific  Company.  The  Malheur  Canon  is  the  only  eastward  pass 
from  Central  Oregon  to  the  Snake  River  country.  To  the  north 
lies  a  broken  and  mountainous  countrv,  and  to  the  south  the 
gorge  of  the  Owyhee  River.  The  Malheur  Canon  is  narrow, 
with  precipitous  sides,  and  in  places  there  is  just  sufficient  room, 
with  heavy  rock  excavation,  to  place  a  line.  These  strategetic 
points  have  been  kept  as  a  safeguard.  My  own  examination  of 
the  locality  convinces  me  that  this  is  the  only  practicable  route. 


105 


It  is  nature’s  own  key  between  the  rich  plains  of  Central  Oregon 
and  the  neighboring  State  of  Idaho. 

From  the  present  end  of  the  track  to  the  Deschutes  River  is 
a  distance  of  sixty-five  miles.  The  estimate  of  Mr.  J.  M. 
Stewart,  made  February  28,  1891,  at  which  time  he  was  chief 
engineer  of  the  Oregon  Pacific,  to  complete  the  work  and  carry 
the  track  to  the  Deschutes  River,  is  $1,000,000.  He  gives  the 
following  estimate  of  the  quantity  of  materials  to  be  moved  : 

Earth . . . . .874,271  cubic  yards. 

Loose  rock _ _ _ 105,301  “  “ 

Solid  rock _ _ _ ^  65,820  “  “ 

Cement  gravel _ _ 28,657  “  “ 

This  estimate  is  practically  confirmed  by*  Mr.  Earle,  who 
states  :  “To  extend  the  road  to  the  Deschutes  River  would  cost 
not  to  exceed  $1,250,000.  This  estimate  is  based  on  prices 
paid  when  I  had  charge  of  the  summit.  I  consider,  however, 
that  under  a  better  system  of  management  this  estimate  might 
be  considerably  reduced.” 

It  should  be  remembered  that  beyond  the  present  end  of 
track  there  is  eight  miles  of  track  ready  for  the  ties.  At  the 
summit  there  is  ten  miles  of  grade,  on  which  one-fourth  of  the 
total  work  has  been  done.  Six  months  should  suffice  to  put  the 
track  to  the  Deschutes  River. 

FORMER  FINANCIAL  HISTORY. 

The  writer  has  not  ventured  upon  any  reference  to  this  sub¬ 
ject,  for  two  reasons:  First,  it  did  not  seem  germane  to  the 
object  in  hand,  which  is  the  setting  forth  of^the  present  physical 
condition  of  the  property,  its  surrounding  conditions  and  needs, 
and  immediate  future  development;  and,  second,  he  understands 
that  that  subject  is  now  undergoing  separate  investigation  at 
the  hands  of  other  parties. 


106 


VALUE  AND  INDEBTEDNESS. 

Mr.  D.  H.  Ainsworth  has  aptly  said:  “The  location  of  a 
railroad  is  giving  it  its  constitution.  It  may  be  sick  almost  unto 
death  with  accidents  of  construction  and  management,  but  with 
a  good  constitution  it  will  ultimately  recover.”  Now  the  writer 
ventures  to  say  that  the  Oregon  Pacific  Railroad  has  a  good 
constitution.  If  the  law  of  the  “  survival  of  the  fittest  ”  applies 
to  railroads,  certainly  the  Oregon  Pacific  is  destined  for  great 
things. 

The  location  of  the  road  was  commented  upon  in  the  early 
part  of  this  narrative.  The  writer  can  but  reiterate  his  opinion 
there  expressed,  that  such  location  is  entirely  good,  both  from  a 
strategic  and  from  an  operative  point  of  view.  The  road  is  then 
good  per  se.  Enough  has  been  said  to  show  that  with  a  moder¬ 
ate  extension  and  capable  management,  a  remunerative  future  is 
before  it.  The  writer  desires,  however,  to  go  much  further  than 
this,  and  to  express  in  the  strongest  terms  his  conviction  that  in 
this  property  the  owners  have  the  nucleus  of  one  of  the  most 
profitable  roads  in  the  United  States  to-day.  This  is  not  the 
place  to  discuss  the  full  development  of  the  Oregon  Pacific 
scheme,  further  than  to  say  that  to-day  the  enterprise  is  in  the 
condition  of  a  great  woolen  mill  which  yet  lacks  its  engine  and 
shafting.  It  is  useless  to  expect  returns  from  the  investment  in 
building  and  looms  until  we  complete  the  enterprise  by  a  further 
expenditure  for  something  to  make  the  “  wheels  go  round.”  It 
is  the  same  with  the  Oregon  Pacific  scheme — you  can  not  expect 
net  earnings  until  you  have  co?npleted  the  project,  and  this  can 
only  be  done  by  further  extension;  and  if  you  are  not  prepared 
to  extend,  then,  emphatically,  don’t  buy. 

The  total  liabilities  of  the  Company,  leaving  out  of  account 
the  certificates  issued  by  the  late  receiver,  are: 


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Pay  rolls.' - - -  —  $148,084.87 

Voucher  accounts _ . .  45,626.23 

Sundry  persons’  accounts _ ^ _  9,057.43 

Legal  expenses  of  T.  E.  Hogg,  receiver. _  38,528.50 

Preferred  insurance  certificates.. _ _  15,081.00 

Unadjusted  stock  claims _ _ _  1,500.00 

Total - 1 - ' - - $257,877-03 

To  this  will  have  to  be  added  the  costs  of  court,  which  are 
now  unknown. 

Much  has  been  said  as  to  the  value  of  the  Oregon  Pacific. 
To  the  writer  it  would  appear  to  have  three  values:  First,  its 
present  value  as  a  railroad;  second,  its  abstract  replacement 
value;  and,  lastly,  its  present  value  in  view  of  its  future  devel¬ 
opment. 

As  to  the  first  value,  the  writer,  with  an  intimate  acquaintance 
with  the  circumstances  and  conditions  of  its  operation,  must  say 
that  such  value  is  practically  nil .  Bringing  to  bear  upon  the 
problem  the  experience  gathered  in  almost  twenty  years  of  rail¬ 
road  work,  assisted  by  the  best  available  talent,  after  seven 
months  of  the  most  painstaking  labor,  the  total  result  is  just 
about  an  even  balance  between  earnings  and  operating  expenses. 

As  to  its  replacement  value:  The  statement  filed  with  the 
State  Board  of  Railroad  Commissioners  by  the  Oregon  Pacific 
Railroad  Company  shows  that  $ - was  expended  in  con¬ 

struction  and  equipment.  There  is  good  reason  to  believe  that 
much  of  the  work  cost  much  more  than  it  should  have  done;  cer¬ 
tainly  more  than  the  works  could  be  duplicated  for  to-day.  'The 
writer  believes  that  the  entire  plant  could  be  duplicated  to-day 
for  $3,500,000,  possibly  less. 

It  is  extremely  difficult  to  assign  in  cold  figures  a  value  to 
the  property  under  the  third  proposition,  for  the  reason  that 
such  value  must,  in  the  nature  of  things,  be  merely  a  personal 


108 


estimate,  colored  one  way  or  the  other  by  personal  valuations. 
But  yet  this  property,  or  any  other  in  process  of  development,  has 
such  a  value — manifestly  one  could  pay  too  much  for  a  diamond  in 
the  rough,  for  its  value  lies  in  the  cut ;  nor  can  the  policy  of 
paying  $21  for  double  eagles  be  defended  on  ordinary  financial 
grounds.  But,  in  the  opinion  of  the  writer,  this  question  is 
hardly  liable  to  arise  ;  and  he  therefore  dismisses  it  without 
further  argument. 

YAQUINA  BAY. 

The  Company's  shops,  docks,  etc.,  its  floating  equipment, 
both  ocean  and  river,  various  views  along  its  constructed,  graded, 
and  projected  line;  a  series  of  views  of  the  Willamette  Valley, 
and  with  various  of  its  towns  and  productions  and  a  large  num¬ 
ber  of  views  of  Eastern  Oregon.  There  are  also  submitted 
books  of  original  documents  bearing  upon  the  facts  set  forth  in 
this  report  ;  a  specially  prepared  bird’s-eye  view  of  the  State  of 
Oregon  and  parts  of  surrounding  States,  worked  up  from  official 
maps,  and  a  collection  of  the  various  cereal,  mineral,  and 
arboreal  products  of  the  State. 


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